FX.co ★ Iceland Producer Prices Fall for 1st Time in Over a Year

In June 2025, Iceland experienced a 1.5% year-on-year decline in producer prices, a notable shift from the 0.3% increase recorded in the previous month. This was the first decrease in producer prices since March 2023. The decline was driven primarily by further cost reductions in the metal sector, which fell by 13.4% compared to the 9.8% decrease in May. There was also a notable decline in the costs of exported products, excluding marine items, which dropped by 12.7% from a 9.5% decrease previously. Overall, exported products saw a decrease of 4.7% from 2%, and other manufacturing sectors saw prices decrease by 4.7% compared to a 4% drop earlier. Meanwhile, the rise in prices for marine products slowed to 10.3% from 12.1%. Conversely, inflation in the production sector increased for food production, with an 8.7% rise compared to 7.6% before, and for domestically sold products, which increased by 6.2% over 5.4%. On a month-to-month basis, producer prices declined by 0.6% in June, following a previous 2.3% decrease.