FX.co ★ Latvia Inflation Rate Hits 2-Year High

In August 2025, Latvia's annual inflation rate climbed to 4.1%, marking its peak since August 2023 and up from 3.8% in July. The rise was predominantly influenced by accelerated price increases in various sectors: food and non-alcoholic beverages saw a jump to 7.5% from 6.9% in July, while housing and utilities grew to 3.6% from 3.3%. Additionally, other sectors such as clothing and footwear increased to 1.6% from 1.1%, education advanced to 10.6% from 10.2%, communication rose to 3.8% from 2.7%, and furnishings and household maintenance climbed to 2.6% from 1.2%. Notably, transport rebounded to 0.3% from a previous decline of -0.3%, and miscellaneous goods and services improved to 3.8% from -0.7%. On the other hand, some categories experienced a slowdown in price gains: recreation and culture decreased from 5.0% to 3.6%, alcoholic beverages and tobacco fell from 5.9% to 3.8%, restaurant and hotel services slightly declined from 5.4% to 5.2%, and health decreased from 3.6% to 2.7%. Monthly consumer prices dipped by 0.2% in August, reversing the 0.1% rise recorded in July.