🇮🇸Iceland inflation rate
released 19 Aug 2026 · data through July 2026 · next release expected 31 Aug 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 5.6% as of July 2026. That is 3.1 percentage points above the CBI's 2.5% target, and 2.6 points above the eurozone average of 3.0%.
The breakdown shows core (excluding energy and food) at 7.7%, energy at -12.1%, food at 4.4% and services at 9.9%. The strongest pressure is in services (9.9%), while energy is the softest (-12.1%).
Month on month the headline rose from 5.1% to 5.6%, extending the climb.
Iceland ranks number 2 of 30 European economies by annual inflation, from highest to lowest, between Romania and Lithuania.
Iceland's harmonised inflation is 5.6% as of July 2026 — abovethe European Central Bank's 2% target by 3.6 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 5.6% as of July 2026.
- Is Iceland's inflation above or below the CBI's 2.5% target?
- At 5.6%, it is 3.1 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 2 of 30 European economies by inflation, 2.6 points above the eurozone average of 3.0%.
- Did Iceland's inflation rise or fall last month?
- Month on month, the headline rate rose from 5.1% to 5.6% in July 2026.