Latvia Inflation Hits 9-Month Low

In December 2025, the annual inflation rate decreased to 3.5%, down from 3.8% in the preceding month, representing its lowest mark since March. This reduction in inflation was primarily due to a deceleration in price increases for food and non-alcoholic beverages, which dropped to 4.2% from 5.2% in November. Similarly, price growth softened for alcohol and tobacco, which fell to 0.2% from 2.1%, and for health care, which slowed to 2.5% from 3.7%. A moderation in inflation was also observed in transport-related goods and services, declining to 0.6% from 2.2%, in restaurant and hotel services, reducing to 4.2% from 5.4%, and in education, which decreased to 10.0% from 10.8%. Conversely, inflationary pressures intensified in sectors such as housing and utilities, which increased to 6.9% from 6.2%, furnishings and household maintenance, which rose to 2.3% from a previous negative 0.2%, recreation and culture, up to 2.6% from 2.0%, communication, slightly up to 2.8% from 2.7%, clothing and footwear, increasing to 2.0% from 1.7%, as well as miscellaneous goods and services, which jumped to 4.0% from 0.8%. On a month-to-month comparison, consumer prices saw a decline of 0.1%, building on the 0.3% decrease registered in November.