FX.co ★ Inflation Rate in Iceland Bounces Back

Iceland's annual inflation rate increased to 4.2% in April 2025, marking a rise from the four-year low of 3.8% observed in March. This increase is attributed to accelerated price growth in several sectors, including transport (2.6%, up from 1% in March), food and non-alcoholic beverages (5.7%, compared to 4.9%), recreation and culture (3.1%, from 2.9%), and furnishing and household equipment (1.7%, from 0.4%). However, these pressures were somewhat alleviated by slower price increments in housing and utilities (7.2%, down from 7.6%), health (3.2%, down from 3.5%), and a further decline in prices for hotels, cafés, and restaurants (-0.5%, compared to -0.4%). On a monthly scale, consumer prices increased by 0.9% in April, following a 0.4% rise in March.