Producer prices in Latvia fell by 0.6% year-on-year in July 2025, following a downwardly revised 0.8% decline in the previous month. This marked the second consecutive month of producer deflation, driven by slower cost growth in water supply, sewerage, waste management, and remediation activities (8.8% vs 9.3% in June) and in the manufacturing sector (1.6% vs 1.7%), as well as a smaller decline in electricity, gas, steam, and air-conditioning supply (-13.1% vs -14.7%). In contrast, costs rose faster in mining and quarrying (9.6% vs 8.5%). On a monthly basis, producer prices fell 0.1% in July, marking the fifth straight monthly decline and easing from a revised 0.8% drop in June.