Annual inflation in Latvia rose to 3.5% in May compared to 2.9% the previous month. The most noticeable impact on price growth came from housing costs, energy resources, transportation, and hotel services.
After several months of relatively moderate price growth, inflation in Latvia has accelerated again. According to the Central Statistical Bureau, consumer prices in May were 3.5% higher than a year ago. In April, this figure was 2.9%.
Prices rose by 0.5% over the month, and the average level of consumer prices over the last 12 months was 3.5% higher than in the previous corresponding period.
The most significant impact on the May increase came from housing costs, utilities, restaurants, and hotels. Prices for personal care goods and services, as well as leisure and cultural activities, also increased.
A particularly noticeable jump in prices occurred in the hotel sector. Over the month, accommodation services rose by 25.4%, and on an annual basis, by 16.3%. Prices in restaurants and cafes increased by approximately 4–5% over the year.
For many residents, utility costs remain more tangible. Over the year, the cost of housing, water, electricity, gas, and other types of fuel increased by 5.8%.
Natural gas saw the most significant price increase — 16.6% compared to May of last year. Electricity became 4.7% more expensive, and heating increased by 5.4%.
Another driver of inflation remains transportation. Despite a decrease in fuel prices in May compared to April, motorists' expenses have significantly increased over the year. Fuel prices rose on average by 28.2%, including diesel (+33.3%), gasoline (+21.5%), and autogas (+14.4%).
Healthcare expenses have also noticeably increased. Medical services, dentistry, diagnostic tests, and medications became 4.9% more expensive on average.
Meanwhile, the situation with food prices appears unusual. Despite price increases for certain products, overall, food and non-alcoholic beverages have decreased in price by 0.8% over the year.
The most significant price drops were seen in butter, potatoes, milk, tropical fruits, vegetable oil, and cheese. At the same time, prices for fresh vegetables, eggs, chicken, beef, citrus fruits, and fish have risen.
Interestingly, in May, many seasonal vegetables noticeably decreased in price compared to April; however, some fruits and specific products began to rise in price again after promotional offers ended.
Thus, the main contribution to the current inflation growth comes not from food products, as it was a few years ago, but from utilities, transportation, healthcare, and services. These expense categories increasingly impact the household budgets of residents in Latvia.
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