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. source: Statistics Iceland

Inflation Rate in Iceland increased to 5.20 percent in January from 4.50 percent in December of 2025. 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 February of 2026.

Inflation Rate in Iceland increased to 5.20 percent in January from 4.50 percent in December of 2025. Inflation Rate in Iceland is expected to be 4.30 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
2025-12-22 09:00 AM
Inflation Rate YoY
Dec 4.5% 3.7% 3.5%
2026-01-29 09:00 AM
Inflation Rate YoY
Jan 5.2% 4.5% 4.9%
2026-02-26 09:00 AM
Inflation Rate YoY
Feb 5.2%


Related Last Previous Unit Reference
CPI 668.30 665.80 points Jan 2026
Core Consumer Prices 101.40 100.00 points Jan 2026
Core Inflation Rate 4.70 3.70 percent Dec 2025
CPI Housing Utilities 100.40 100.00 points Jan 2026
CPI Transportation 102.20 100.00 points Jan 2026
Food Inflation 5.80 5.50 percent Jan 2026
GDP Deflator 135.30 133.90 points Jun 2025
Inflation Rate YoY 5.20 4.50 percent Jan 2026
Inflation Rate MoM 0.40 1.20 percent Jan 2026
Producer Prices 314.80 310.40 points Dec 2025
PPI YoY 5.90 3.80 percent Dec 2025


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
5.20 4.50 25.20 -0.06 1989 - 2026 percent Monthly
1988M5=100, NSA

News Stream
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
Iceland Inflation Rate at 11-Month High
The inflation rate in Iceland rose to 4.5% year-on-year in December 2025 from 3.7% in the previous month. This marked the highest reading since January as prices increased for housing, water, electricity, gas and other fuels (7.1% vs 6.5% in November), health (4.2% vs 3.7%), communications (1% vs 0.7%), recreation and culture (2.8% vs 2.3%), hotels, cafés, and restaurants (5.4% vs 4.8%), and miscellaneous goods and services (4.1% vs 3.5%). At the same time, costs recovered for clothing and footwear (0.8% vs -2.3%), furnishings and household equipment (0.3% vs -1.2%), and transport (2.3% vs -0.1%), while price growth remained unchanged for alcoholic beverages and tobacco (5.4%) and educational services (2.4%). Meanwhile, inflation slowed for food and non-alcoholic beverages (5.5% vs 6%). On a monthly basis, consumer prices rose by 1.2% in December, the fastest pace in over a year, rebounding from a 0.5% decline in the previous period.
2025-12-22
Iceland Inflation Rate Slows to Near 5-Year Low
The annual inflation rate in Iceland inched down to 3.7% in November 2025 from 4.3% in the previous month, marking the lowest reading since December 2020. Prices moderated for alcoholic beverages and tobacco (5.4% vs 5.8% in October), housing, water, electricity, gas and other fuels (6.5% vs 7.1%), communications (0.7% vs 0.8%), recreation and culture (2.3% vs 3.4%), and miscellaneous goods and services (3.5% vs 4.2%). In addition, costs declined for clothing and footwear (-2.3% vs 0.2%), furnishings and household equipment (-1.2% vs 1.3%) and transport (-0.1% vs 0.8%). Conversely, prices accelerated for food and non-alcoholic beverages (6% vs 5.8%), health (3.7% vs 3%), and hotels, cafés and restaurants (4.8% vs 4.7%). On a monthly basis, consumer prices fell by 0.5%, reversing a 0.5% increase in the preceding month.
2025-11-27