Iceland Producer Inflation Rises in February

Iceland’s producer prices increased 5.5% year-on-year in February 2025, following a 4.6% rise in the previous month. Costs rose more sharply in the metal industry (5.2% vs 0.2% in January) and exported products (5.8% vs 4.4%), while prices in food production edged up to 7.4% from 7.3%. At the same time, costs for exported products excluding marine products declined at a slower pace (-0.3% vs -3.3%). On the other hand, producer inflation for products sold domestically moderated to 4.6% from 5.0%, while prices in other manufacturing industries remained unchanged at -5.0%. On a monthly basis, producer prices rose 1.7% in February from 0.2% in the preceding period.

Iceland’s producer price rose 4.6% year-on-year in January 2026, slowing from 5.9% in December. Price growth for marine products eased to 19.8% from 21.8% in December, while exported products saw a slower rise of 4.4% compared with 6.0%. Deflation persisted for exported products excluding marine products, which fell further to -3.6% from -2.2%, and for products sold domestically, which eased to -5.0% from -5.5%. Food production costs continued to rise but at a more moderate pace of 7.3% from 7.7%. The metal industry moved slightly into positive territory at 0.2%, after a decline of 1.6% in the prior month, while growth in other manufacturing industries softened to 7.3% from 7.7%. On a monthly basis, producer prices increased by just 0.2% in January, the smallest gain since late July, sharply easing from a 1.4% rise in December.

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.