FX.co ★ Iceland’s Inflation Accelerates to 5.2% in January, Reversing Recent Cooling Trend

Iceland’s consumer price inflation picked up in January 2026, with the year-over-year Consumer Price Index (CPI) rising to 5.2%, up from 4.5% in December 2025. The latest data, updated on 29 January 2026, indicate a renewed acceleration in price growth after a period of relative easing.

The figures are based on a year-over-year comparison, measuring how prices in January 2026 compare with those in January a year earlier. Similarly, December’s 4.5% reading reflected the annual change relative to December of the previous year. The move from 4.5% to 5.2% suggests mounting price pressures at the start of 2026, a development likely to attract close attention from policymakers and market participants monitoring Iceland’s inflation trajectory.