FX.co ★ Iceland Producer Inflation Rises in February

Iceland’s producer prices rose 5.5% year-on-year in February 2025, accelerating from a 4.6% increase in January. The upturn was driven by sharper cost growth in the metal industry (5.2% vs 0.2% in January) and for exported products (5.8% vs 4.4%), while prices in food production inched up to 7.4% from 7.3%.

Meanwhile, prices for exported products excluding marine products continued to decline, though at a slower rate (-0.3% vs -3.3%). By contrast, producer price inflation for goods sold on the domestic market eased to 4.6% from 5.0%, and prices in other manufacturing industries were unchanged at -5.0%.

On a monthly basis, producer prices increased 0.2% in February, down from a 1.4% rise in the previous month.