FX.co ★ Iceland Producer Inflation Slows in March

In March 2025, Iceland experienced an 8.3% year-on-year increase in producer prices, down from the 9.5% peak observed the previous month, which had been the highest level in eleven months. This marks twelve continuous months of rising producer prices, although the rate of increase has decelerated. Specifically, there was a decrease in prices for exported products excluding marine products (from 13.3% in February to 10.5%), exported products overall (from 12.2% to 10.1%), the metal industry (from 18.9% to 17.6%), and marine products (from 10.1% to 9.3%). Conversely, costs for other manufacturing sectors declined, registering -1.7% compared to a previous increase of 0.9%. However, inflation continued to rise in the food production sector, moving from 4.5% to 5.3%, and for products sold within the domestic market, where it increased from 3.4% to 3.9%. On a month-to-month basis, producer prices decreased by 1% in March, following a 0.8% increase in the previous period.