Iceland Inflation Rate

Last Release

Nov 30, 2025

Actual

3.7

Units In

4.3

Frequency

Monthly

Next Release

Dec 22, 2025

Time to Release

23 Days 11 Hours

Highest	Lowest	Average	Date Range	Source
25.2 Dec 1989	-0.06 Nov 1994	5.09 %	1989-2025	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

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.