Inflation Iceland 2026
Average inflation: 5.3%
Inflation in 2026
Inflation is very high at 5.3%, far above the ECB target.
Peak and Trough
The highest inflation was in September at 5.9%. The lowest inflation was in May at 5.1%.
- Highest month
- September: 5.9%
- Lowest month
- May: 5.1%
- Difference
- 0.8 percentage points
- Months with data
- 9 of 12
Historical Context
Inflation is 1.2 percentage points lower than the 5-year average of 6.5%.
- 5-year average
- 6.5%
- 10-year average
- 4.7%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Over the period 2024-2026, inflation has remained relatively stable. Compared to 2025, inflation has risen by 1.2 percentage points.
- Change vs. previous year
- +1.2 percentage points
- Largest monthly swing
- September: +1.8 percentage points
ECB Target
Inflation is 3.3 percentage points above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for ISK 100 this year will cost approximately ISK 105 next year at this inflation rate.
Multi-year trend
Monthly figures 2026
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2025 |
|---|---|---|
| January | 5.2% | +0.5 |
| February | 5.2% | +1.0 |
| March | 5.4% | +1.6 |
| April | 5.2% | +1.0 |
| May | 5.1% | +1.3 |
| June | 5.2% | +1.1 |
| July | 5.3% | +1.3 |
| August | 5.6% | +1.8 |
| September | 5.9% | +1.8 |
| Average | 5.3% |
Data source
Data from OECD. Last updated: 29/10/2026. Not all months available yet.