Iceland Producer Inflation Eases in August

Iceland’s producer prices rose by 13.7% year-on-year in August 2026, easing from 18.6% in the previous month and marking the weakest growth in four months. All major categories recorded slower price growth, including marine products (16.8% vs 22.5% in July), metal products (27.4% vs 38.9%), food products (3.4% vs 3.6%), other manufacturing industries (3.8% vs 6.1%), products sold domestically (1.9% vs 2.0%), exported products (19.2% vs 26.9%), and exported products excluding marine products (20.4% vs 29.8%). On a monthly basis, producer prices fell by 3.3% in August, following a 0.5% decline in the preceding month, marking a second consecutive drop and the sharpest decline since June 2022.

Iceland’s producer prices rose by 18.6% year-on-year in July 2026, slowing from a four-year high of 19.4% in the previous month. Price growth eased for metal products (38.9% vs 45.3% in June), food production (3.6% vs 3.9%), products sold domestically (2.0% vs 2.3%), exported products (26.9% vs 27.9%), and exported products excluding marine products (29.8% vs 32.0%). Meanwhile, costs increased at a faster pace for marine products, climbing to 22.5% from 21.9% in June, as well as for other manufacturing industries, jumping to 6.1% from 4.1%. On a monthly basis, producer prices fell 0.5% in July 2026, reversing a 1.6% gain in the previous month and marking the first decline since June 2025, as well as the lowest monthly reading since then.

Iceland’s producer prices surged by 19.4% year-on-year in June 2026 from a three-year high of 16.8% in the previous month. The latest reading marked the highest level since June 2022, driven by a sharper increase in prices for marine products, which rose 21.9% from 19.6%, and metal products, which accelerated to 45.3% from 38.1% in May. Moreover, inflation in other manufacturing industries increased to 4.1% from 2.5%. Exported products excluding marine products recorded a notable increase of 32.0% from 25.8%, while overall export product inflation also accelerated to 27.9% from 23.2%. On the other hand, producer inflation eased for other components, including food products, which slowed to 3.9% from 5.5%, and products sold domestically, which moderated to 2.3% from 3.6% a month earlier. On a monthly basis, producer prices rose 1.6% in June, easing from a 2.0% increase in the previous month.