FX.co ★ Iceland Inflation Highest in 2 Years

The annual inflation rate rose to 5.9% in September 2026, up from 5.6% in August, reaching its highest level since August 2024. Price growth accelerated in several categories, including transport (11.9% vs. 9.9% in August), alcoholic beverages, tobacco and narcotics (3.9% vs. 3.7%), health (5.3% vs. 4.0%), information and communication (5.6% vs. 5.4%), recreation, sport and culture (3.6% vs. 3.4%), and personal care, social protection, and miscellaneous goods and services (5.9% vs. 4.9%). Prices also rebounded in furnishings, household equipment, and routine household maintenance (0.7% vs. -0.1%).

By contrast, inflation eased in food and non-alcoholic beverages (4.0% vs. 4.1%), housing, water, electricity, gas and other fuels (6.5% vs. 6.8%), education services (9.7% vs. 11.0%), restaurants and accommodation (4.4% vs. 4.9%), and insurance and financial services (3.3% vs. 3.6%). Clothing and footwear prices declined (-0.9% vs. 0.7%).

On a monthly basis, consumer prices rose 0.4% in September, compared with a 0.2% increase in August.