The annual inflation rate in Iceland rose to 3.2 percent in August of 2019 from 3.1 percent in the prior month. Prices increased faster for food & non-alcoholic beverages (3.2 percent vs 3.0 percent in July); recreation & culture (3.0 percent vs 2.7 percent); restaurants & hotels (2.7 percent vs 2.6 percent); furniture & household equipment (4.5 percent vs 0.7 percent); clothing & footwear (7.7 percent vs 2.3 percent) and alcoholic beverages & tobacco (2.6 percent vs 2.0 percent). In addition, prices dropped at a softer pace for education (-0.8 percent vs -1.1 percent) and communication (-2.0 percent vs -2.8 percent). On the other hand, cost slowed for housing & utilities (3.0 percent vs 3.4 percent); transport (3.2 percent vs 4.1 percent); miscellaneous goods & services (3.5 percent vs 4.2 percent). On a monthly basis, consumer prices increased 0.3 percent, rebounding from a 0.2 percent drop in the previous month. Inflation Rate in Iceland averaged 4.99 percent from 1989 until 2019, 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.
Inflation Rate in Iceland is expected to be 3.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Iceland to stand at 2.70 in 12 months time. In the long-term, the Iceland Inflation Rate is projected to trend around 2.30 percent in 2020, according to our econometric models.