Iceland Inflation Rate

The annual inflation rate in Iceland eased to 5.1% year-on-year in May 2026 from 5.2% in the previous month, marking the lowest reading since December 2025. Price pressures eased across several categories, including housing and utilities (6.6% vs. 6.7% in April), food and non-alcoholic beverages (4.2% vs. 4.9%), recreation, sports and culture (2.7% vs. 3.0%), restaurants and accommodation services (5.1% vs. 5.4%), information and communication (2.9% vs. 3.4%), health (4.4% vs. 4.5%), and alcoholic beverages and tobacco (3.5% vs. 3.6%). At the same time, deflation deepened slightly for furnishings, household equipment, and routine household maintenance (-0.4% vs. -0.2%). By contrast, inflation accelerated in transportation (7.9% vs. 7.6%) and personal care, social protection, and miscellaneous goods and services (6.6% vs. 5.3%). On a monthly basis, consumer prices slowed by 0.1% in May from a 0.8% increase in the prior month.

The annual inflation rate in Iceland eased to 5.2% year-on-year in April 2026 from an 18-month high of 5.4% in the previous month. Price growth slowed across several categories, including housing and utilities (6.7% vs 6.9% in March), food and non-alcoholic beverages (4.9% vs 5.8%), recreation, sports and culture (3% vs 3.6%), restaurants and accommodation services (5.4% vs 5.8%), clothing and footwear (1.4% vs 2.3%), and alcoholic beverages, tobacco and narcotics (3.6% vs 3.7%). At the same time, prices for furnishings, household equipment and routine household maintenance fell to 0.2% after remaining unchanged in March. Meanwhile, inflation rose in transport (7.6% vs 6.1%), information and communication (3.4% vs 2.5%), health (4.5% vs 4.4%), personal care, social protection and miscellaneous goods and services (5.3% vs 5.2%), and education (4.2% vs 3.9%). On a monthly basis, consumer prices edged up 0.8% in April, following a 0.6% rise in the previous month.

The inflation rate in Iceland rose to 5.4% year-on-year in March 2026 from 5.2% in the previous two months. This marked the highest reading since September 2024, as prices increased for transport (6.1% vs 4.2% in February), food and non-alcoholic beverages (5.8% vs 5.6%), alcoholic beverages and tobacco (3.7% vs 3.6%), information and communication (2.5% vs 2.4%), and personal care, social protection, and miscellaneous goods and services (5.1% vs 4.4%). At the same time, prices held steady for education services (3.8%), while deflation eased in furnishings, household equipment, and routine maintenance (-0.1% vs -0.8%). Meanwhile, inflation slowed for housing and utilities (6.9% vs 7.2%), recreation and culture (3.6% vs 3.7%), restaurants and accommodation services (5.7% vs 6.3%), health (4.4% vs 4.5%), and clothing and footwear (2.3% vs 3.6%). On a monthly basis, consumer prices rose by 0.6% in March, easing from 0.9% in the previous month.