In Latvia, inflation rates have decreased to 2.9% in January compared to December, according to the Central Statistical Bureau. The consumer prices remained unchanged in January, but when compared year-on-year, they have risen. This decrease from a 3.5% inflation rate in the previous month reflects some stabilization in prices following recent volatility. The average consumer price level over the past twelve months has increased by 3.7%, suggesting ongoing pressures in specific market sectors despite the overall reduction in inflation rate.

Key contributors to the changes in price levels include decreases in the transport sector by 0.4 percentage points and declines in clothing and footwear by 0.2 percentage points. Conversely, increased costs associated with housing, water, electricity, gas, and other fuels have added 0.4 percentage points to the inflation figure. This mixed impact from different sectors highlights the complexity of managing inflation and its various drivers in the Latvian economy.

Food prices, particularly for non-alcoholic beverages, saw an increase of 0.3% within the month, with a notable surge in costs for fresh or chilled fruits and vegetables, which rose by 8.8%. The increase in prices for meat products and fresh dates, figs, and tropical fruits can largely be attributed to the conclusion of stock, indicating that seasonal fluctuations also play a significant role in consumer price changes.