In August 2025, consumer prices in Latvia fell by 0.2% compared to July, but increased by 4.1% year-on-year, compared to August 2024, according to data from the Central Statistical Bureau. A month earlier, annual inflation stood at 3.8%.
Meanwhile, the average consumer price level for the past 12 months, compared to the previous 12 months, rose by 3.2% in August.
The main factors influencing the monthly change in prices were transport-related goods and services (-0.2 percentage points), alcoholic beverages and tobacco (-0.1 percentage points), food and non-alcoholic beverages (-0.1 percentage points), as well as housing-related goods and services (+0.1 percentage points) and the group of miscellaneous goods and services (+0.1 percentage points).
Month-on-month developments
Food and non-alcoholic beverage prices dropped by 0.3% in August. The largest decreases came from fresh vegetables (-5.6%), potatoes (-10%), and fresh fruit (-2.3%). Promotions also made dried, salted, or smoked meat (-1.3%), milk (-2.3%), and coffee (-0.7%) cheaper. Fresh or chilled fish prices fell by 5.8%. At the same time, cheese and cottage cheese (+1.6%), bread (+0.9%), chocolate (+2.8%), and other dairy products (+1.6%) became more expensive, while confectionery rose by 0.9%.
Alcoholic beverages and tobacco prices fell on average by 1.9%. Alcohol was cheaper by 3.1%, mainly due to discounts on beer, spirits, and wine. Tobacco products, however, became 0.4% more expensive.
Housing-related goods and services rose by 0.6%, mainly due to higher electricity prices (+2.5%) and rent (+3.1%), while heating (-0.5%) was cheaper.
Transport costs dropped by 1.4% overall, largely because fuel prices fell by 2.1% – gasoline by 3.2%, diesel by 1.5%, and auto gas by 1.1%. Passenger air transport also became cheaper, while bus transport and vehicle maintenance and repair costs rose.
Recreation and culture-related prices fell by 0.6%, mainly due to discounts on pet food (-3.1%) and flowers.
Restaurant and hotel services rose on average by 1.3%, with hotel services jumping 6% and restaurant/café prices rising 0.6%.
Miscellaneous goods and services increased by 2.2%, driven by higher prices for personal hygiene and beauty products after promotions ended.
Other groups saw notable price decreases for footwear and pharmaceutical products, while prices rose for bundled telecom services and clothing.
Year-on-year developments
Compared to August 2024, the biggest upward pressures on prices in August 2025 came from food and non-alcoholic beverages (+2 percentage points), housing-related goods and services (+0.6 percentage points), and alcoholic beverages and tobacco (+0.3 percentage points).
Food and non-alcoholic beverage prices rose 7.5% over the year. Coffee prices jumped 34.2%, poultry 20.3%, chocolate 29.9%, fresh fruit 12.3%, eggs 23.5%, butter 20%, cheese and cottage cheese 5.5%, dairy products 5.7%, fresh vegetables 4.3%, confectionery 3.7%, milk 5.4%, and beef 28.8%. Dried, salted, or smoked meat rose 2.3%, and vegetable oil 12.9%. Prices fell for fresh or chilled fish (-14.9%), potatoes (-5.5%), flour and cereals (-5.2%), and sugar (-8.4%).
Alcohol and tobacco rose by 3.8% overall, with tobacco up 9.7% and alcohol up 0.7%, driven by stronger spirits, while beer prices fell.
Housing costs increased by 3.6% year-on-year, with notable rises in electricity (+9.2%), property management (+7.9%), natural gas (+10.9%), maintenance and repair services (+12%), waste collection (+11%), rent (+5.5%), sewerage (+4.2%), and water supply (+2.8%). Heating (-4.3%) and solid fuels (-3.9%) became cheaper.
Healthcare services rose 2.7% year-on-year, driven by specialist visits, dentistry, lab tests, and radiology services, though pharmaceutical products became cheaper.
Recreation and culture rose 3.6%, mainly due to higher TV subscriptions, leisure and sports services, and print publications.
Restaurant and hotel services rose 5.2% year-on-year, with restaurant and café services up 4.1%, canteens up 6.3%, fast food up 6.5%, and hotels up 7.5%.
Miscellaneous goods and services rose by 3.8%, with personal hygiene and beauty products more expensive, as well as nursing home fees and hairdressing/beauty salon services. Motor vehicle insurance, however, became cheaper.
Other categories saw higher prices for telecom services, preschool education, footwear, and vehicle maintenance/repairs, while fuel (-0.7%) and used cars became cheaper.
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