Latvia Inflation Rate Slows in May

The annual inflation rate in Latvia eased to 3.6% in May 2025 from a twenty-month high of 3.9% in the previous month.

The slowdown was mainly driven by lower inflation in alcoholic beverages and tobacco products (7.3% vs 8% in April), clothing and footwear (0.7% vs 1.4%), and miscellaneous goods and services (0.7% vs 5.4%).

Additionally, transport costs declined for the third straight month (-4.2% vs -1.3%).

On the other hand, inflation picked up for food and non-alcoholic beverages (7.5% vs 7.3%), housing and utilities (3.2% vs 1.2%), and restaurant and hotel services (4.8% vs 4.5%).

On a monthly basis, consumer prices fell by 0.1% in May, the first decrease in nine months, reversing a 1.1% increase in the preceding period.