FX.co ★ Iceland’s Inflation Holds at 5.9% in October, Halting Recent Disinflation Trend

Iceland’s consumer price inflation remained unchanged in October 2026, with the year-over-year Consumer Price Index (CPI) holding steady at 5.9%, according to data updated on 29 October 2026. This matches the September 2026 reading, indicating a pause in the recent disinflation trend.

Both the current and previous figures compare price growth to the same months a year earlier, meaning October’s 5.9% print reflects the same annual pace of inflation as in September. The stabilization suggests that, at least for now, price pressures are neither easing further nor re-accelerating on a year-over-year basis, leaving inflation elevated and still above the low single-digit levels typically targeted by many advanced economies.

With back-to-back months at 5.9%, policymakers and market participants in Iceland will likely focus on whether this plateau marks a temporary pause before further moderation or the start of a more persistent period of higher inflation. Upcoming data releases will be key to clarifying the direction of Iceland’s price dynamics heading into the end of 2026.