FX.co ★ Latvia Producer Inflation at 4-Month Low

In December 2025, Latvia experienced a slowdown in annual producer inflation, which decreased to 1%—the lowest level recorded in four months—from 2.1% in November. This deceleration was mainly due to a significant reduction in costs for electricity, gas, steam, and air-conditioning supply, which dropped to -1.9% from 3.9% in the previous month. Additionally, manufacturing experienced a more modest increase in costs, rising by 0.9% compared to 1.2% in November. Within this sector, there were notable changes in the manufacture of wood and cork products, which edged up by 1.7% from the prior month's 2%, and in non-metallic products, which saw a rise of 3.8% compared to 4.3% previously. Meanwhile, inflation in mining and quarrying slightly decreased to 17% from 17.3%. However, there was an acceleration in costs related to waste collection, treatment, disposal, and materials recycling, which increased to 3.9% from 3.5%. On a monthly basis, producer prices fell by 0.8%, opposing the 0.1% rise observed in November.