Iceland Inflation Holds Steady at 5.9% in October

Iceland’s annual inflation rate remained at 5.9% in October 2026, unchanged from September, keeping inflation at its highest level since August 2024. Transport prices rose 12.6% year-on-year, accelerating from 11.9% in September, while health inflation increased to 7.2% from 5.2%. Prices also rose at a faster pace for recreation, sport and culture (4.4% vs. 3.6%) and restaurants and accommodation services (4.8% vs. 4.4%). Meanwhile, inflation eased for housing, water, electricity, gas and other fuels (6.1% vs. 6.5%), food and non-alcoholic beverages (3.9% vs. 4.0%), and alcoholic beverages, tobacco and narcotics (3.7% vs. 3.8%). Clothing and footwear prices fell (-0.8% vs -0.9%), while prices for furnishings, household equipment and routine household maintenance dropped (-1.4% vs 0.8%). Education services inflation held steady at 9.7%. On a monthly basis, consumer prices increased 0.4% in October, matching September’s rise.

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.

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.