Iceland Inflation Rate Steady at 5.2%

Iceland’s annual inflation rate rose to 5.2% in February 2026, matching the previous month’s peak, which was the highest level since September 2024. Prices increased for recreation and culture (3.6% vs 3.4% in January), restaurants and accommodation services (6.2% vs 6%), health (4.5% vs 3.5%), clothing and footwear (3.7% vs 0.8%), and personal care, social protection, and miscellaneous goods and services (4.5% vs 3.6%). At the same time, prices held steady for housing and utilities (7.2%) and education services (3.9%). Meanwhile, inflation eased for transport (4.2% vs 4.6%), food and non-alcoholic beverages (5.6% vs 5.8%), alcoholic beverages and tobacco (3.6% vs 4.1%), and information and communication (2.5% vs 2.7%), while deflation continued in furnishings, household equipment, and routine maintenance (-0.8% vs -0.4%). On a monthly basis, consumer prices rose to 0.9% in February, up from 0.4% in the previous month.