Iceland Inflation Highest in 2 Years

2026-09-29 09:48 By Erika Ordonez 1 min. read

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.



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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.
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