🇮🇸Iceland inflation rate
Last updated 1 Jul 2026 · data through May 2026 · next release expected 17 Jul 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 4.8% as of May 2026. That is 2.3 percentage points above the CBI's 2.5% target, and 2.0 points above the eurozone average of 2.8%.
The breakdown shows core (excluding energy and food) at 6.5%, energy at -10.5%, food at 4.2% and services at 8.7%. The strongest pressure is in services (8.7%), while energy is the softest (-10.5%).
Month on month the headline eased from 4.9% to 4.8%, 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 Croatia.
Iceland's harmonised inflation is 4.8% as of May 2026 — abovethe European Central Bank's 2% target by 2.8 percentage points.
Compare with the rest of Europe on the European inflation ranking →
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 4.8% as of May 2026.
- Is Iceland's inflation above or below the CBI's 2.5% target?
- At 4.8%, it is 2.3 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, 2.0 points above the eurozone average of 2.8%.
- Did Iceland's inflation rise or fall last month?
- Month on month, the headline rate eased from 4.9% to 4.8% in May 2026.