FX.co ★ Latvia Inflation Rate Hits 14-Month Low

The annual inflation rate eased to 2.9% in January 2025, down from 3.5% in December, reaching its lowest level since November 2024. Starting in 2025, the CSB will apply a new reference period in the calculation of the consumer price index (CPI), assigning the average price level of 2025 a value of 100. The CPI in both Latvia and the European Union is compiled in line with the revised European Classification of Individual Consumption According to Purpose (ECOICOP), version 2.

Price growth slowed for food and non-alcoholic beverages (3.9% vs. 4.2% in December) and for housing (6% vs. 6.9%), while transport costs declined (-2.2% vs. +0.6%). Overall inflation was further dampened by weaker price increases in recreation, sport and culture (1.5% vs. 2.6%) and in information and communication (2.5% vs. 2.8%). In contrast, prices rose at a faster pace for alcoholic beverages and tobacco (0.8% vs. 0.2%), health (3% vs. 2.5%), and clothing and footwear (2.4% vs. 2%).

On a monthly basis, consumer prices were unchanged in January, following a 0.1% decline in December 2025.