2026.03.2011:00:00UTC+00Latvia’s Producer Prices Swing Into Deflation in February, Underscoring Easing Cost Pressures

Latvia’s Producer Price Index (PPI) shifted sharply into negative territory in February 2026, signaling a notable easing of cost pressures in the industrial sector. Year-over-year, producer prices fell by 0.8% in February, a reversal from the 1.2% annual increase recorded in January 2026.

The data, updated on 20 March 2026, show that the February reading marks a clear inflection point: while January’s PPI still indicated rising input costs compared with a year earlier, February’s decline points to outright producer price deflation. As PPI typically feeds through to consumer prices with a lag, the move may foreshadow softer inflation dynamics ahead, with implications for corporate margins, pricing strategies, and potentially for monetary policy expectations in Latvia.

Investors and analysts will now be watching subsequent releases to determine whether February’s negative print represents the start of a more prolonged disinflationary trend in Latvian producer prices or a short-term correction following previous gains.