Iceland’s annual inflation rate inched up to 5.2% year-on-year in June 2026, from 5.1% in May. The main upward pressures came from transport (9.9% vs. 7.9%), information and communication (3.6% vs. 2.9%), and recreation, sport and culture (2.8% vs. 2.7%). Prices for furnishings and household equipment also rebounded, rising 0.2% after a 0.4% decline in the previous month. Inflation in educational services stood at 4.2%.
At the same time, price growth slowed for food and non-alcoholic beverages (3.9% vs. 4.2%), housing and utilities (6.5% vs. 6.6%), restaurants and accommodation (4.6% vs. 5.1%), health (4.1% vs. 4.4%), insurance and financial services (3.9% vs. 4.1%), and alcoholic beverages and tobacco (3.3% vs. 3.5%). Meanwhile, clothing and footwear prices shifted direction, declining 1.2% after a 0.9% increase in May. On a monthly basis, consumer prices rose 0.9% in June— the fastest pace in four months— accelerating from a 0.1% rise in May.
