Iceland Inflation Rate

Last Release

Jan 31, 2026

Actual

5.2

Units In

4.5

Frequency

Monthly

Next Release

Feb 26, 2026

Time to Release

25 Days 11 Hours

Highest	Lowest	Average	Date Range	Source
25.2 Dec 1989	-0.06 Nov 1994	5.09 %	1989-2026	Statistics Iceland

In Iceland, the most important category in the consumer price index is Housing and Utilities (29.3 percent of total weight). Transport accounts for 14.9 percent; Food and Non-Alcoholic Beverages for 14.7 percent; Recreation and Culture for 10.3 percent; Miscellaneous Goods and Services for 6.2 percent and Restaurants and Hotels for 5.4 percent. Furniture, Household Goods and Maintenance; Health; Clothing and Footwear; Alcoholic beverages and Tobacco; Communication and Education account for the remaining 19.2 percent of total weight.

Latest Updates

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.