Latvia: cost of living

Are food prices going up in Latvia?

Food and non-alcoholic drink prices in Latvia were 4.8% lower in September 2026 than a year earlier, and fell 0.8% during the month, according to the Central Statistical Bureau. Over the year butter was 24.6% cheaper, bread 5.7% and poultry 7.4%.

Overall consumer prices still rose 3.2% over the same year, because fuel, heating and electricity costs went up. The food index measures prices in shops for a fixed basket, so it does not show changes in how much households spend. Restaurant and café prices are counted separately and rose 3.6%.

Official sources: CSB: Consumer price changes in September 2026

How much have fuel prices risen in Latvia?

Prices of fuel for personal transport in Latvia were 35.3% higher in September 2026 than a year earlier, according to the Central Statistical Bureau. Diesel rose 39.1%, petrol 29.5% and autogas 3.0%. In September alone fuel prices rose 9.6%.

These are changes in the fuel component of the consumer price index, not pump prices in euros per litre; fuel retailers set daily prices. Fuel was the largest single driver of annual inflation in September 2026. The CSB also publishes a separate monthly release on fuel and transport price changes.

Official sources: CSB: Consumer price changes in September 2026

How much does electricity cost in Latvia?

Households in Latvia using 2,500 to 4,999 kWh a year paid EUR 0.2452 per kWh including taxes and levies in the second half of 2025, against an EU average of EUR 0.2896, according to Eurostat electricity price statistics. The CSB reports that electricity prices for consumers were 6.0% higher in September 2026 than a year earlier, and heat energy 9.1% higher, in its September 2026 price release.

Eurostat prices are averages for a consumption band and include network charges. Actual bills depend on the supplier contract, fixed or exchange-linked pricing, and distribution tariffs approved by the Public Utilities Commission.

Official sources: Eurostat: Electricity prices for household consumers · CSB: Consumer price changes in September 2026

What is the poverty rate in Latvia?

22.0% of Latvia's population were at risk of poverty in 2025, meaning their equivalised disposable income was below 60% of the national median, according to Eurostat EU-SILC data. The EU rate was 16.3%. The wider at-risk-of-poverty-or-social-exclusion rate was 24.7%.

The Central Statistical Bureau reports that household disposable income averaged EUR 950 per household member a month in 2024, and that the at-risk-of-poverty threshold for a one-person household was EUR 699 a month. The poverty rate is relative, so it can rise when incomes grow if low incomes grow more slowly.

Official sources: Eurostat: At-risk-of-poverty rate (ilc_li02) · CSB: Income keeps growing, as does income inequality

What are the income tax rates in Latvia?

From 2025 Latvia taxes personal income at 25.5% on annual income up to EUR 105,300 and 33% above that, according to the Ministry of Finance. In 2026 the non-taxable minimum is a fixed EUR 550 a month for all employees, up from EUR 510 in 2025, and the relief for each dependant is EUR 250 a month.

An extra 3% rate applies to yearly income above EUR 200,000. Employees also pay state social insurance contributions, so take-home pay is lower than gross pay minus income tax alone. The State Revenue Service publishes the rules for employers and taxpayers.

Official sources: Ministry of Finance: Changes in direct taxes

What is Latvia's inflation rate?

The latest figure from the IMF, for 2025, is 3.7%. Its high point since 2005 was 2022, at 17.3%; its low point was 2010, at -1.1%. Across Europe & Central Asia the middle value was 3.7%, and Latvia placed 24th highest of 48. Of 165 countries with 2025 data, 62nd highest.

How much do people in Latvia spend?

In 2025, household consumption per person in Latvia was $10,022, according to the World Bank. It is the top of the series, which starts in 2005. Across Europe & Central Asia the middle value was $11,266, and Latvia placed 28th highest of 44. Of 124 countries with 2025 data, 36th highest.

What share of people in Latvia live in extreme poverty?

In 2023, the share of people living on less than $3.00 a day in Latvia was 0.4%, according to the World Bank. The peak was 3.1% in 2005 and the low 0.3% in 2019. Europe & Central Asia median: 0.4%; Latvia is 16th highest of 34. World rank, highest first: 38th of 59.

What is the poverty rate in Latvia?

The World Bank puts the share of people below the national poverty line in Latvia at 22.5% in 2022. Its high point since 2005 was 2008, at 26.4%; its low point was 2010, at 19.0%. It is 2nd highest of 22 in Europe & Central Asia, where the median is 17.9%. Worldwide: 21st of 52.

What is Latvia's Gini coefficient?

The latest figure from the World Bank, for 2023, is 34.0. Its high point since 2005 was 2005, at 39.0; its low point was 2022, at 33.7. Europe & Central Asia median: 31.5; Latvia is 8th highest of 34. World rank, highest first: 28th of 59.

What is food insecurity in Latvia?

According to the FAO, moderate or severe food insecurity in Latvia was 11.7% in 2024. No year since 2015 has been higher. It is 11th highest of 45 in Europe & Central Asia, where the median is 7.6%. Of 135 countries with 2024 data, 86th highest.