# Latvian inflation and pension indexation

> Live situation record from CLSTR: https://clstr.news/situations/latvian-inflation-and-pension-indexation
> Updated: 2026-08-13T08:17:00.000Z. Sources: 4. Developments: 2.

Latvia is managing economic shifts related to inflation and consumer prices. While annual inflation dropped to 2.6% in July due to seasonal factors and VAT reductions on certain food items, economists warn that this decline may be temporary. Pēteris Strautiņš, chief economist at Luminor, predicts inflation could reach approximately 3% in August and exceed 4% by the end of the year, driven by rising costs in housing, utilities, and services.

In response to economic conditions, the government has announced a pension indexation scheduled for October 1. This adjustment will affect approximately 97% of pensioners, with increases ranging from 4.24% to 5.22% based on the recipient's length of insurance. The indexation is calculated using the 12-month consumer price index and real growth in insurance contribution salaries.

## Timeline

### 2026-08-13: Latvia announces pension indexation for October 1

Latvia will index pensions on October 1, with increases between 4.24% and 5.22% for 97% of recipients based on their employment history.

2 sources. https://clstr.news/cluster/latvia-announces-pension-indexation-for-october-1

### 2026-08-12: Latvia inflation forecast suggests rise above 4% by year-end

Economists warn that Latvia's recent drop in inflation to 2.6% may be short-lived, with rates potentially exceeding 4% by year-end due to rising energy and food costs.

3 sources. https://clstr.news/cluster/latvia-inflation-forecast-suggests-rise-above-4-by-year-end

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Cite as: Latvian inflation and pension indexation. CLSTR, https://clstr.news/situations/latvian-inflation-and-pension-indexation