Latvia inflation rises to 3.2% in August 2026

Latvia's annual inflation rate rose to 3.2% in August 2026, up from 2.6% in the previous month, according to data from the Central Statistical Bureau. On a month-to-month basis, consumer prices increased by 0.3% compared to July.

While goods prices rose by 2% year-on-year, services saw a more significant increase of 5.9%. Key drivers for the monthly price changes included transport (+0.3 percentage points) and housing, water, and energy. Conversely, food and non-alcoholic beverage prices decreased by 1.2% during the month.

Specific food price fluctuations included a 12.8% drop in potato prices and decreases in various fruits and vegetables. However, some items like pork (+3.5%) and ready-made meals (+1.9%) saw price increases. The impact of previous VAT reductions on certain food items is beginning to stabilize or diminish in visibility.

Economist Pēteris Strautiņš noted that while summer provided some relief, rising fuel costs and heating tariffs are expected to impact prices moving into autumn. Heating tariffs increased by 1.2% in August, with further rises anticipated in September.