The inflation rate in Iceland rose to 5.4% year-on-year in March 2026 from 5.2% in each of the previous two months. This marked the highest reading since September 2024, as prices increased for transport (6.1% vs 4.2% in February), food and non-alcoholic beverages (5.8% vs 5.6%), alcoholic beverages and tobacco (3.7% vs 3.6%), information and communication (2.5% vs 2.4%), and personal care, social protection, and miscellaneous goods and services (5.1% vs 4.4%). At the same time, prices held steady for education services (3.8%), while deflation eased in furnishings, household equipment, and routine maintenance (-0.1% vs -0.8%). Meanwhile, inflation slowed for housing and utilities (6.9% vs 7.2%), recreation and culture (3.6% vs 3.7%), restaurants and accommodation services (5.7% vs 6.3%), health (4.4% vs 4.5%), and clothing and footwear (2.3% vs 3.6%). On a monthly basis, consumer prices rose by 0.6% in March, easing from 0.9% in the previous month. source: Statistics Iceland

Inflation Rate in Iceland increased to 5.40 percent in March from 5.20 percent in February of 2026. Inflation Rate in Iceland averaged 5.09 percent from 1989 until 2026, reaching an all time high of 25.20 percent in December of 1989 and a record low of -0.06 percent in November of 1994. This page provides - Iceland Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Iceland Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on March of 2026.

Inflation Rate in Iceland increased to 5.40 percent in March from 5.20 percent in February of 2026. Inflation Rate in Iceland is expected to be 5.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Iceland Inflation Rate is projected to trend around 2.60 percent in 2027 and 2.50 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-02-26 09:00 AM
Inflation Rate YoY
Feb 5.2% 5.2% 5.0%
2026-03-26 09:00 AM
Inflation Rate YoY
Mar 5.4% 5.2% 5.7%
2026-04-29 09:00 AM
Inflation Rate YoY
Apr 5.4%


Related Last Previous Unit Reference
CPI 678.30 674.60 points Mar 2026
Core Consumer Prices 102.90 102.50 points Mar 2026
Core Inflation Rate 6.70 6.80 percent Mar 2026
CPI Housing Utilities 101.10 100.90 points Mar 2026
CPI Transportation 104.30 102.50 points Mar 2026
Food Inflation 5.80 5.60 percent Mar 2026
GDP Deflator 141.86 138.70 points Dec 2025
Inflation Rate YoY 5.40 5.20 percent Mar 2026
Inflation Rate MoM 0.60 0.90 percent Mar 2026
Producer Prices 320.70 315.40 points Feb 2026
PPI YoY 5.50 4.60 percent Feb 2026


Iceland Inflation Rate
In Iceland, the most important categories in the consumer price index are housing and utilities (29 percent of total weight); transport (15 percent); and food and non-alcoholic beverages (15 percent). The index also includes: recreation and culture (10 percent); miscellaneous goods and services (7 percent); and furnishings and household equipment (7 percent). Hotels, cafes and restaurants, health, clothing and footwear, alcoholic beverages and tobacco, communication and education account for the remaining 17 percent of total weight.
Actual Previous Highest Lowest Dates Unit Frequency
5.40 5.20 25.20 -0.06 1989 - 2026 percent Monthly
1988M5=100, NSA

News Stream
Iceland Inflation Rate at 18-Month High
The inflation rate in Iceland rose to 5.4% year-on-year in March 2026 from 5.2% in the previous two months. This marked the highest reading since September 2024, as prices increased for transport (6.1% vs 4.2% in February), food and non-alcoholic beverages (5.8% vs 5.6%), alcoholic beverages and tobacco (3.7% vs 3.6%), information and communication (2.5% vs 2.4%), and personal care, social protection, and miscellaneous goods and services (5.1% vs 4.4%). At the same time, prices held steady for education services (3.8%), while deflation eased in furnishings, household equipment, and routine maintenance (-0.1% vs -0.8%). Meanwhile, inflation slowed for housing and utilities (6.9% vs 7.2%), recreation and culture (3.6% vs 3.7%), restaurants and accommodation services (5.7% vs 6.3%), health (4.4% vs 4.5%), and clothing and footwear (2.3% vs 3.6%). On a monthly basis, consumer prices rose by 0.6% in March, easing from 0.9% in the previous month.
2026-03-26
Iceland Inflation Rate Steady at 5.2%
Iceland’s annual inflation rate rose to 5.2% in February 2026, matching the previous month’s peak, which was the highest level since September 2024. Prices increased for recreation and culture (3.6% vs 3.4% in January), restaurants and accommodation services (6.2% vs 6%), health (4.5% vs 3.5%), clothing and footwear (3.7% vs 0.8%), and personal care, social protection, and miscellaneous goods and services (4.5% vs 3.6%). At the same time, prices held steady for housing and utilities (7.2%) and education services (3.9%). Meanwhile, inflation eased for transport (4.2% vs 4.6%), food and non-alcoholic beverages (5.6% vs 5.8%), alcoholic beverages and tobacco (3.6% vs 4.1%), and information and communication (2.5% vs 2.7%), while deflation continued in furnishings, household equipment, and routine maintenance (-0.8% vs -0.4%). On a monthly basis, consumer prices rose to 0.9% in February, up from 0.4% in the previous month.
2026-02-26
Iceland Inflation Rate Hits 2024-Highs
Iceland’s annual inflation rate rose to 5.2% in January 2026, the highest level since September 2024, from 4.5% in December 2025. Inflation accelerated for housing and utilities (7.2% versus 7.1%), transport (4.6% versus 2.3%), food (5.8% versus 5.5%), recreation and culture (3.4% versus 2.8%), hotels and restaurants (6% versus 5.4%), communication (2.7% versus 1%) and education (3.9% versus 2.4%). In contrast, prices of furnishings declined (-0.4% versus 0.3%) and a slowdown was seen for health (3.5% versus 4.2%) and alcoholic beverages and tobacco (4.1% versus 5.4%). Inflation for clothing and footwear prices remained steady at 0.8%. On a monthly basis, inflation fell to 0.4% in January, down from 1.2% in the previous month.
2026-01-29