The annual inflation rate in Iceland increased to 3.3 percent in November 2018, up from a 2.8 percent rise in the prior month. it is the third straight rise in the consumer price index and the steepest since December 2013, mainly due to rising prices of transport (4.2% vs 3.1% in October). Also, inflation remained elevated for housing & utilities (4.9% vs 5.0%) and food & non-alcoholic beverages (4.1%, the same as in October). Additional upward pressure came from prices of: recreation & culture (0.8% vs 0.3%); miscellaneous goods & services (1.9% vs 1.7%); hotels, cafes & restaurants (3.1 percent vs 2.2 percent); furniture & household equipment (2.7% vs 0.8%); health (1.4% vs 0.8%); clothing & footwear (2.0% vs -2.1%) and alcoholic beverages & tobacco (3.1% vs 3.0%). On a monthly basis, consumer prices edged up 0.2 percent, after increasing 0.6 percent in the previous month Inflation Rate in Iceland averaged 5.04 percent from 1989 until 2018, 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 2.90 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 3.40 in 12 months time. In the long-term, the Iceland Inflation Rate is projected to trend around 2.70 percent in 2020, according to our econometric models.