Latvia's Ministry of Finance published an inflation update citing the latest Central Statistical Bureau data showing consumer prices rose 1.9% month on month in March 2026 and 3.4% year on year, a sharp increase from 2.3% annual inflation in February. The ministry attributed the acceleration largely to higher fuel prices. Average diesel and 95-octane petrol prices in March were EUR 1.886 and EUR 1.667 per litre, up 25.4% and 11.4% from February and up 24.1% and 7.5% year on year. With fuel representing 4.1% of the household consumption basket in 2026, fuel contributed 0.8 percentage points to March inflation; the ministry linked diesel’s stronger increase to the EU consuming more diesel than it produces, making prices more sensitive to maritime transport risks and logistics disruption. It expected fuel prices to average higher in April, with diesel exceeding EUR 2 per litre and 95-octane petrol potentially reaching EUR 1.85 per litre, amid volatile Brent pricing that moved from around USD 110 per barrel on 7 April to USD 95 on 8 April following a declared two-week US-Iran ceasefire, while constrained Strait of Hormuz throughput was flagged as a continuing source of volatility. The ministry noted discussion of second-round effects is warranted but that broader pass-through to other prices is still to come, with only limited increases seen so far in passenger transport services such as taxis, air travel and sea transport. Food and non-alcoholic beverage prices rose 1.1%, the lowest increase in almost two years, while utility prices and electricity, gas and heating tariffs had not yet reflected higher oil and gas prices due to longer-term supplier and household contracts. Eurostat flash data indicated annual inflation increased in March in almost all European Union member states except Slovakia and Slovenia, and rose in the euro area to 2.5% from 1.9% in February, with higher fuel prices also cited as a driver.
Ministry of Finance (Latvia) 2026-04-10
Latvia's Ministry of Finance reports March inflation accelerating to 3.4% as fuel prices surge
The Ministry of Finance of Latvia reported that consumer prices rose 1.9% month on month and 3.4% year on year in March 2026, up from 2.3% in February, driven largely by higher fuel prices. Fuel, which accounts for 4.1% of the consumption basket, contributed 0.8 percentage points to March inflation amid sharp increases in diesel and petrol prices, with the ministry expecting further rises in April. The ministry said broader second-round effects on other prices remain limited, while Eurostat flash data show inflation also picked up across most EU member states and in the euro area, partly due to higher fuel costs.