Iceland’s annual inflation rate eased to 5.2% year-on-year in April 2026, down from an 18‑month high of 5.4% in March. Price growth slowed in several major categories, including housing and utilities (6.7% vs 6.9% in March), food and non-alcoholic beverages (4.9% vs 5.8%), recreation, sports and culture (3.0% vs 3.6%), restaurants and accommodation services (5.4% vs 5.8%), clothing and footwear (1.4% vs 2.3%), and alcoholic beverages, tobacco and narcotics (3.6% vs 3.7%). Prices for furnishings, household equipment and routine household maintenance edged up by 0.2% after remaining flat in March.
In contrast, inflation accelerated in transport (7.6% vs 6.1%), information and communication (3.4% vs 2.5%), health (4.5% vs 4.4%), personal care, social protection and miscellaneous goods and services (5.3% vs 5.2%), and education (4.2% vs 3.9%). On a monthly basis, consumer prices rose 0.8% in April, following a 0.6% increase in March.
