In December 2025, Iceland experienced a noticeable uptick in its Consumer Price Index (CPI), with the index climbing to 4.5%, up from 3.7% reported in November. This data, updated on December 22, 2025, captures a year-over-year comparison, highlighting a significant change in the inflationary landscape over the past month.
This rise in the CPI indicates a strengthening inflationary pressure compared to the same period last year, as well as an increase from the previous month's year-over-year comparison. The November 2025 data previously reflected a 3.7% CPI, showcasing the escalating trend in prices for goods and services within the nation as 2025 draws to a close.
The shift from 3.7% to 4.5% suggests potential impacts on purchasing power and cost-of-living adjustments for consumers and businesses alike. As Iceland heads into the new year, stakeholders and economists will closely monitor how this inflation trend progresses and what implications it may hold for the broader Icelandic economy.