Latvia's annual inflation rate eased to 2.6% in July 2026 from 3.4% in June, the lowest reading since February. The slowdown was driven mainly by a deeper fall in food prices, which declined 3.1% after a 0.9% drop in June. Inflation also moderated for housing and utilities, transport, restaurants and hotels, healthcare, information and communications, and furnishings. Price growth stood at 4.8% for recreation, sports and culture and 3.5% for education. By contrast, inflation accelerated for insurance and financial services and for alcoholic beverages and tobacco. On a monthly basis, consumer prices fell 0.7% after being flat in June, indicating a broad cooling in price pressures at the start of the third quarter.