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In December 2025, Latvia's Consumer Price Index (CPI) demonstrated signs of stabilization, inching closer to a balancing point after a decline in the previous month. According to the latest data updated on January 13, 2026, the nation's CPI recorded a month-over-month change of -0.10%, a slight improvement from November's -0.30%.
This marginal change comes as part of the economic adjustments following November's deeper dip in consumer prices. The consistent easing in the decline of Latvia's CPI is viewed as an indicator of the economy beginning to find its steady path. Economic analysts are hinting at the potential for gradual normalization, as the inflation rate hovers around less negative rates, possibly signaling the nearing end of deflationary pressures.
The continued observation of these trend changes is crucial for policy-makers and investors, with upcoming economic indicators likely to provide further insight into the stability of Latvia's economy as it navigates through the transitional period of deflation into potential stabilization. As such fluctuations continue, the close monitoring of market responses and consumer behavior will be pivotal in forecasting future economic policies.
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