FX.co ★ Latvia Annual Inflation Accelerates

Latvia’s annual inflation rate accelerated to 3.2% in August 2026, up from 2.6% in July. The pickup was driven primarily by stronger price growth in transport, where inflation jumped to 8.6% from 4.8% in the previous month. Price increases also intensified in recreation, sports and culture (6.5% vs 4.8%), restaurants and hotels (7.6% vs 6.9%), health (4.2% vs 3.8%), alcoholic beverages and tobacco (2.8% vs 1.1%), and insurance and financial services (6.8% vs 5.9%).

By contrast, inflation in housing and utilities was unchanged at 6.8%. Food prices continued to fall and did so at a faster pace, declining 4.0% year-on-year after a 3.1% drop in July. Inflation also eased for clothing and footwear, slowing to 0.7% from 1.1%.

On a monthly basis, consumer prices rose 0.3% in August, following a 0.7% decrease in July.