FX.co ★ Iceland Producer Inflation at 4-Month High

In August 2025, Iceland saw a 1.4% year-on-year increase in producer prices, rebounding from a 0.6% decrease the previous month. This was the highest rate since April 2025. The rise was driven by higher costs in marine products, which surged by 12.4%, up from 10.0% in July, and domestically sold products, which increased by 6.7%, compared to 6.5% previously. Meanwhile, there was a slower decline in the metal industry prices at -7.1%, an improvement from -10.7%, and other manufacturing sectors at -3.8%, slightly better than -4.7%. Exported product prices decreased less sharply at -0.8%, compared to -3.6% previously, with exported products excluding marine products dropping by 7.8%, an improvement from -10.8%. Additionally, the inflation for food products eased slightly to 9.1% from 9.2%. On a month-to-month basis, producer prices increased by 1.0% in August, up from a 0.1% rise in the preceding month.