Iceland’s annual inflation rate held at 5.9% in October 2026, unchanged from September, remaining at its highest level since August 2024.
By category, transport prices rose 12.6% year-on-year, up from 11.9% in September, while health-related prices accelerated to 7.2% from 5.2%. Prices also increased at a faster pace for recreation, sport and culture (4.4% vs. 3.6%), as well as for restaurants and accommodation services (4.8% vs. 4.4%).
In contrast, inflation moderated for housing, water, electricity, gas and other fuels (6.1% vs. 6.5%), food and non-alcoholic beverages (3.9% vs. 4.0%), and alcoholic beverages, tobacco and narcotics (3.7% vs. 3.8%). Clothing and footwear prices continued to decline (-0.8% vs. -0.9%), and prices for furnishings, household equipment and routine household maintenance fell more sharply (-1.4% vs. 0.8%). Inflation in education services remained unchanged at 9.7%.
On a monthly basis, consumer prices rose 0.4% in October, matching the increase recorded in September.
