Latvia’s annual inflation rate accelerated to 3.2% in August 2026 from 2.6% in the previous month. The acceleration was mainly due to higher price growth for transports, which rose sharply to 8.6% from 4.8% in July, as well as recreation, sports and culture (6.5% vs 4.8%), restaurants and hotels (7.6% vs 6.9%), health (4.2% vs 3.8%), alcoholic beverages and tobacco (2.8% vs 1.1%) and insurance and financial services (6.8% vs 5.9%). Meanwhile, inflation for housing and utilities remained unchanged at 6.8%. In contrast, food prices continued to decline, falling sharply by 4% compared with a 3.1% drop in the prior month, while inflation moderated for clothing and footwear (0.7% vs 1.1%). On a monthly basis, consumer prices edged up 0.3% following a 0.7% decline in July.