Latvia Producer Inflation at 3-Month Low – Rehana William |Financial Consultant _Forex_Gold Xauusd| Fund Manager
Latvia’s producer price inflation eased to 2.6% year-on-year in August 2026, down from a revised 3.3% in July, marking the lowest level since May.
The slowdown was mainly driven by lower price growth in mining and quarrying, which fell to 4.9% from 7.8%, and electricity, gas and steam supply, which dropped sharply to 1.0% from 8.0%.
However, manufacturing costs moved higher, with producer prices rising 2.5%, compared with 1.9% in July. Chemical, rubber and plastic, wood, paper and fabricated metal products all recorded stronger price growth.
On a monthly basis, producer prices increased 0.5%, reversing July’s revised 0.1% decline.
Key Takeaway
Latvia’s headline producer inflation is cooling, but cost pressures remain uneven across industrial sectors. Energy-related inflation has eased, while manufacturing continues to show stronger price growth.
What Does the Latvia Producer Price Data Mean?
The August figures present a mixed picture for Latvia’s industrial price environment.
On one side, the annual producer inflation rate has eased to 2.6%, with particularly notable moderation in energy-related sectors.
On the other hand, several manufacturing categories are experiencing faster price growth, while monthly producer prices increased 0.5%.
This combination suggests that cost pressures are cooling in some parts of the economy but remain persistent in others.
Producer prices are also closely watched because changes in business input and production costs can eventually influence consumer prices, although the pass-through is not immediate or guaranteed.
Latvia’s latest consumer-price data showed annual consumer inflation at 3.2% in August 2026, according to the Central Statistical Bureau.
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