Iceland Producer Inflation Hits 13-Month High

Iceland’s producer prices climbed 8.6% year-on-year in March 2026 from 5.5% in the previous month, marking the highest level since February 2025. Cost pressures increased across several sectors, including marine products (21.1% vs 17.5% in February), metal industry (6.1% vs 5.2%), and exported products (10.4% vs 5.8%). Prices also edged higher for domestic products (4.7% vs 4.6%), while inflation in food production remained steady at 7.4%. At the same time, costs rebounded in other manufacturing industries (1.1% vs -5%) and in exported products excluding marine goods (4.6% vs -0.3%). On a monthly basis, producer prices rose 1.9% in March, following the 1.7% gain in the preceding period, marking the highest reading since November 2025.

Iceland’s producer prices increased 5.5% year-on-year in February 2026, 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.