FX.co ★ Latvia's Producer Price Index Dips as December Figures Reflect Economic Slowdown

In the latest update on Latvia's economic indicators, the nation's Producer Price Index (PPI) has notably declined, reflecting challenges in the broader economic landscape. While November 2025 saw a modest 0.1% increase, the December 2025 PPI figures reveal a substantial drop to -0.8%. This data marks a significant month-over-month downturn and indicates potential headwinds in Latvia's industrial sector.

The PPI measures the average change over time in the selling prices received by domestic producers for their output, serving as a crucial indicator of economic health and inflationary trends. The sudden drop from the previous month's positive but minimal growth highlights the potential stress points within the country's industrial production and pricing power.

The data released on January 22, 2026, indicates a need for close monitoring of the industrial trends and production costs as Latvia navigates the challenges. This development underscores the volatility in the global economy impacting domestic financial stability and may necessitate recalibrations in economic policy and industrial strategy to stabilize the local market. Stakeholders in the Latvian economy will be watching closely for any governmental interventions or market adjustments in response to this decline.