🇮🇸Iceland inflation rate
released 16 Oct 2026 · data through September 2026 · next release expected 31 Oct 2026
Iceland sits outside the euro area, with its own currency and central bank. Harmonised inflation (HICP) — the EU-harmonised measure that makes prices comparable across Europe — stands at 5.4% as of September 2026. That is 2.9 percentage points above the CBI's 2.5% target, and 1.6 points above the eurozone average of 3.8%.
The breakdown shows core (excluding energy and food) at 6.8%, energy at −4.2%, food at 4.1% and services at 8.9%. The strongest pressure is in services (8.9%), while energy is the softest (−4.2%).
Month on month the headline eased from 6.1% to 5.4%, a step down from the month before.
Iceland ranks number 4 of 30 European economies by annual inflation, from highest to lowest, between Bulgaria and Cyprus.
Harmonised inflation (HICP) is 5.4% as of September 2026 — that is 2.9 percentage points above the CBI's 2.5% target.
Inflation by year
Inflation in Iceland averaged 3.7% in 2025, lower than in 2024 (4.5%).
| Year | Annual average | December, year on year |
|---|---|---|
| 2026 so far | – | 5.4% (September) |
| 2025 | 3.7% | 4.0% |
| 2024 | 4.5% | 3.6% |
| 2023 | 8.0% | 6.9% |
| 2022 | 5.7% | 7.2% |
| 2021 | 3.7% | 3.9% |
| 2020 | 1.2% | 2.3% |
| 2019 | 2.0% | 0.9% |
| 2018 | 0.7% | 2.0% |
| 2017 | −1.7% | −1.0% |
Annual average: the average HICP index of the year compared with the previous year's average, as Eurostat publishes it (prc_hicp_ainr) — not an average of the monthly rates. December: the year-on-year rate of that month (prc_hicp_minr). The current year shows the latest monthly year-on-year rate.
Compare with the rest of Europe on the European inflation ranking →
Work out what money from the past is worth today: Inflation Calculator Iceland →
Frequently asked questions
- What is Iceland's current inflation rate?
- Iceland's annual inflation rate, measured by the harmonised index of consumer prices (HICP), is 5.4% as of September 2026.
- Is Iceland's inflation above or below the CBI's 2.5% target?
- At 5.4%, it is 2.9 percentage points above the Central Bank of Iceland's 2.5% target.
- How does Iceland's inflation compare with the rest of Europe?
- Iceland ranks number 4 of 30 European economies by inflation, 1.6 points above the eurozone average of 3.8%.
- Did Iceland's inflation rise or fall last month?
- Month on month, the headline rate eased from 6.1% to 5.4% in September 2026.
- What was inflation in Iceland in 2025?
- Inflation in Iceland averaged 3.7% in 2025, lower than in 2024 (4.5%). In December 2025, the year-on-year rate was 4.0%.
- What was inflation in Iceland over the last 10 years?
- Between 2017 and 2025, annual average inflation in Iceland ranged from −1.7% in 2017 to 8.0% in 2023. The mean of the annual rates over those years was 3.1%.