FX.co ★ Iceland’s Monthly Inflation Momentum Cools Sharply in January

Iceland’s consumer price inflation slowed markedly at the start of 2026, with the month‑over‑month Consumer Price Index (CPI) rising just 0.4% in January, down from 1.2% in December 2025. The latest data, updated on 29 January 2026, indicate a significant easing in short-term price pressures.

The comparison is based on month-over-month changes, where the “actual” figure reflects January’s price movement versus December, while the “previous” refers to December’s change compared with November. The decline from 1.2% to 0.4% suggests that while prices are still increasing, the pace of monthly inflation has slowed considerably heading into the new year.

This softer monthly reading could signal an early moderation in inflation dynamics after a stronger price surge at the end of 2025, and will likely be closely watched by policymakers and markets for signs of a more sustained disinflationary trend in Iceland.