The annual inflation rate rose to 5.9% in September 2026 from 5.6% in the previous month, marking the highest reading since August 2024. Inflation accelerated in transport (11.9% vs 9.9% in August), alcoholic beverages, tobacco and narcotics (3.9% vs 3.7%), health (5.3% vs 4.0%), information and communication (5.6% vs 5.4%), recreation, sport and culture (3.6% vs 3.4%), and personal care, social protection and miscellaneous goods and services (5.9% vs 4.9%), while rebounding in furnishings, household equipment and routine household maintenance (0.7% vs -0.1%). In contrast, prices increased at a slower pace in food and non-alcoholic beverages (4.0% vs 4.1%), housing, water, electricity, gas and other fuels (6.5% vs 6.8%), education services (9.7% vs 11.0%), restaurants and accommodation (4.4% vs 4.9%), and insurance and financial services (3.3% vs 3.6%). Clothing and footwear prices fell (-0.9% vs 0.7%). On a monthly basis, consumer prices rose 0.4% in September from 0.2% in August. source: Statistics Iceland

Inflation Rate in Iceland increased to 5.90 percent in September from 5.60 percent in August of 2026. Inflation Rate in Iceland averaged 5.10 percent from 1989 until 2026, reaching an all time high of 25.20 percent in December of 1989 and a record low of -0.06 percent in November of 1994. This page provides - Iceland Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2026.

Inflation Rate in Iceland increased to 5.90 percent in September from 5.60 percent in August of 2026. Inflation Rate in Iceland is expected to be 6.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Inflation Rate is projected to trend around 3.00 percent in 2027 and 2.50 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-08-27 09:00 AM
Inflation Rate YoY
Aug 5.6% 5.3% 5.7%
2026-09-29 09:00 AM
Inflation Rate YoY
Sep 5.9% 5.6% 6.0%
2026-10-29 09:00 AM
Inflation Rate YoY
Oct 5.9%


Related Last Previous Unit Reference
CPI 697.30 694.60 points Sep 2026
Core Consumer Prices 105.40 105.50 points Sep 2026
Core Inflation Rate 6.70 7.00 percent Sep 2026
CPI Housing Utilities 104.40 104.00 points Sep 2026
CPI Transportation 110.80 111.10 points Sep 2026
Food Inflation 4.00 4.10 percent Sep 2026
GDP Deflator 144.79 144.17 points Jun 2026
Inflation Rate YoY 5.90 5.60 percent Sep 2026
Inflation Rate MoM 0.40 0.20 percent Sep 2026
Producer Prices 333.40 344.60 points Aug 2026
PPI YoY 13.70 18.60 percent Aug 2026


Iceland Inflation Rate
In Iceland, the most important categories in the consumer price index are housing and utilities (29 percent of total weight); transport (15 percent); and food and non-alcoholic beverages (15 percent). The index also includes: recreation and culture (10 percent); miscellaneous goods and services (7 percent); and furnishings and household equipment (7 percent). Hotels, cafes and restaurants, health, clothing and footwear, alcoholic beverages and tobacco, communication and education account for the remaining 17 percent of total weight.
Actual Previous Highest Lowest Dates Unit Frequency
5.90 5.60 25.20 -0.06 1989 - 2026 percent Monthly
1988M5=100, NSA

News Stream
Iceland Inflation Highest in 2 Years
The annual inflation rate rose to 5.9% in September 2026 from 5.6% in the previous month, marking the highest reading since August 2024. Inflation accelerated in transport (11.9% vs 9.9% in August), alcoholic beverages, tobacco and narcotics (3.9% vs 3.7%), health (5.3% vs 4.0%), information and communication (5.6% vs 5.4%), recreation, sport and culture (3.6% vs 3.4%), and personal care, social protection and miscellaneous goods and services (5.9% vs 4.9%), while rebounding in furnishings, household equipment and routine household maintenance (0.7% vs -0.1%). In contrast, prices increased at a slower pace in food and non-alcoholic beverages (4.0% vs 4.1%), housing, water, electricity, gas and other fuels (6.5% vs 6.8%), education services (9.7% vs 11.0%), restaurants and accommodation (4.4% vs 4.9%), and insurance and financial services (3.3% vs 3.6%). Clothing and footwear prices fell (-0.9% vs 0.7%). On a monthly basis, consumer prices rose 0.4% in September from 0.2% in August.
2026-09-29
Iceland Inflation Hits Two-Year High
The annual inflation rate rose to 5.6% year-on-year in August 2026 from 5.3% in the previous month, and marking the highest reading since August 2024. Prices increased faster for food and non-alcoholic beverages (4.1% vs 3.9% in July), clothing and footwear (0.7% vs -1.6%), housing, water, electricity, gas and other fuels (6.8% vs 6.5%), information and communication (5.3% vs 4.8%), recreation, sport and culture (3.5% vs 3.2%), and education services (11.0% vs 4.1%). Meanwhile, inflation eased for transport (9.9% vs 10.0%), health (3.9% vs 4.0%), and restaurants and accommodation (5.0% vs 5.1%). Inflation also slowed slightly for insurance and financial (3.7% vs 3.8%) and personal care, social protection and miscellaneous goods and services (4.9% vs 5.0%), while inflation in alcoholic beverages, tobacco and narcotics remained unchanged at 3.7%. On a monthly basis, consumer prices eased to 0.2% in August, from 0.4% in the previous month.
2026-08-27
Iceland Inflation Rate at 4-Month High
The annual inflation rate rose to 5.3% year-on-year in July 2026 from 5.2% in the previous month, marking the highest level since March. Prices increased for transport (10% vs 9.9% in June), recreation, sport and culture (3.2% vs 2.8%), restaurants and accommodation services (5.1% vs 4.6%), information and communication (4.8% vs 3.6%), and alcoholic beverages, tobacco and narcotics (3.7% vs 3.3%). Meanwhile, inflation eased for furnishings, household equipment and routine household maintenance (0.1% vs 0.2%), health (4.0% vs 4.1%), personal care, social protection and miscellaneous goods and services (5.0% vs 5.7%), and education (4.1% vs 4.2%). Deflation in clothing and footwear also deepened (-1.6% vs -1.2%), while inflation held steady for food and non-alcoholic beverages at 3.9% and housing and utilities at 6.5%. On a monthly basis, consumer prices increased 0.4% in July, down from 0.9% in June.
2026-07-23