Latvia Inflation Rate Hits 2-Year High

The annual inflation rate in Latvia rose to 4.1% in August 2025, the highest since August 2023, accelerating from 3.8% in July. The increase was mainly driven by faster price growth in food and non-alcoholic beverages (7.5% vs 6.9% in July), housing & utilities (3.6% vs 3.3%), clothing and footwear (1.6% vs 1.1%), education (10.6% vs 10.2%), communication (3.8% vs 2.7%), and furnishings and household maintenance (2.6% vs 1.2%), alongside rebounds in transport (0.3% vs -0.3%) and miscellaneous goods and services (3.8% vs -0.7%). Conversely, price gains slowed in recreation and culture (3.6% vs 5.0%), alcoholic beverages and tobacco (3.8% vs 5.9%), restaurant and hotel services (5.2% vs 5.4%), and health (2.7% vs 3.6%). On a monthly basis, consumer prices fell 0.2% in August, reversing a 0.1% increase in July.