Iceland Producer Prices Rise the Most In Over 3 Years

Iceland's producer prices surged by 16.8% year-on-year in May 2026, marking the highest level since July 2022, up from 12% in the previous month. Metal products increased the most, surging 38.1% compared to 16.9% in April. Exported products excluding marine products saw a strong increase to 25.8% from 13.6%, while exported product inflation also accelerated, rising 23.2% from 15.8%. In contrast, price increases for products sold domestically eased to 3.6% from 3.9%. Meanwhile, producer inflation eased for other components, including marine products (19.6% vs 19.9%) and food production (5.5% vs 6.1%). On a monthly basis, producer prices rose 2% in May, following a 2.3% rise in the previous month.

Iceland’s producer prices jumped 12% year-on-year in April 2026 from a thirteen-month high of 8.6% in the previous month. The latest figure marked the highest reading since September 2022, mainly due to higher costs for metal products (16.9% vs 6.1% in March), exported products (15.8% vs 10.4%), and exported products excluding marine products (13.6% vs 4.6%). On the other hand, price growth moderated in marine products (19.9% vs 21.1%), food production (6.1% vs 7.4%), and products sold domestically (3.9% vs 4.7%). On a monthly basis, producer prices advanced by 2.3% in April, following a 1.9% gain in the preceding period, marking the highest level since November 2025.

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.