Iceland Producer Inflation Hits 9-Month High

Iceland’s producer price climbed by 5.9% year-on-year in December 2025, accelerating from a 3.8% increase in the previous month. This marked the highest reading since March, driven by a sharp increase in marine products (21.8% vs 17.8% in November), and exported products (6% vs 2.8%). At the same time, deflation eased in the metal industry (-1.6% vs -2.8%), other manufacturing industries (-0.7% vs -3.6%), and exported products excluding marine products (-2.2% vs -4.9%). On the other hand, inflation moderated for products sold domestically (5.5% vs 6%), and food production (7.7% vs 8.2%). On a monthly basis, producer prices increased by 1.4%, slowing from 3.7% in November.

Iceland’s producer prices rose by 3.8% year-on-year in November 2025, accelerating from a 3% increase in the previous month. This marked the highest reading since April, driven by higher costs of marine products (17.8% vs 14.3% in October) and exported products (2.8% vs 1.5%). Additionally, prices declined at a slower pace in the metal industry (-2.8% vs -4.4%) and exported products excluding marine products (-4.9% vs -5.3%). On the other hand, producer inflation moderated for food production (8.2% vs 8.8%) and products sold domestically (6% vs 6.3%), while prices decreased further for other manufacturing industries (-3.6% vs -2.5%). On a monthly basis, producer prices climbed by 3.7% in November, the sharpest since March 2022, following a 1.2% gain in the preceding period.

Iceland’s producer prices rose by 3.0% year-on-year in October 2025, slowing from a five-month high of 3.1% in the previous month. This marked the third consecutive month of rising producer prices albeit at a slower pace, as prices moderated for food production (8.8% vs 10.4% in September), and products sold domestically (6.3% vs 7.2%). Additionally, costs declined further in the metal industry (-4.4% vs -2.3%) and exported products excluding marine products (-5.3% vs -4.9%). On the other hand, producer inflation increased at a faster pace for marine products (14.3% vs 13%) and exported products (1.5% vs 1.3%). Moreover, prices decreased at a slower pace for other manufacturing industries (-2.5% vs -4.2%). On a monthly basis, producer prices increased by 1.2% in October, following a 0.9% rise in the preceding period.