Latvia's Ministry of Finance published an assessment of the latest consumer price data showing that prices in May rose 0.5% from the previous month and 3.5% year on year, up 0.6 percentage points from April. It linked the increase to faster price growth in services and non-food goods, with fuel as the largest driver of the annual rise. Fuel contributed 1.2 percentage points to annual inflation, or about one third of the increase, reflecting sharp year-on-year rises in diesel and 95-octane petrol prices even though diesel fell 6.8% from April. The ministry also highlighted higher housing-related energy costs, with electricity prices up 6.3% year on year, gas up 17.5%, and household heating up 5.4%, with further heat tariff increases seen as likely when larger municipalities review tariffs ahead of the next heating season. By contrast, food prices fell 1.1% from a year earlier, partly offsetting higher fuel and energy costs. The ministry expects annual inflation in June to be between 3.3% and 3.6%. It said diesel prices could fall by a further EUR 0.10 to EUR 0.12 from May levels, while petrol prices are likely to stay around May levels, although global oil and diesel prices may remain volatile because of developments in the Gulf region. From July, the value added tax rate on certain basic food products will be cut to 12% from 21%, which the ministry expects to put downward pressure on food prices.
Ministry of Finance (Latvia)2026-06-09
Latvia's Ministry of Finance says May inflation rose to 3.5 percent led by fuel and energy costs
Latvia’s Ministry of Finance reported that consumer prices in May rose 0.5% month on month and 3.5% year on year, driven mainly by faster price growth in services and non-food goods, with fuel contributing 1.2 percentage points to annual inflation. The ministry highlighted higher electricity, gas and household heating costs, partly offset by a 1.1% year-on-year decline in food prices, and expects June inflation at 3.3%–3.6%. It anticipates that a cut in the value added tax rate on certain basic food products from 21% to 12% from July will exert additional downward pressure on food prices.