Iceland Inflation Hits 5.9 Percent in September

Statistics Iceland reported that consumer price inflation rose to 5.9 percent year-on-year in September, marking the highest level in more than two years. This figure represents an increase from the 5.6 percent rate recorded in August. The current peak is the highest since August 2024, when inflation reached 6.0 percent.

Transportation costs and health expenses drove the increase. Transportation inflation rose to 11.9 percent from 9.9 percent, while health costs accelerated to 5.3 percent from 4.0 percent. On a monthly basis, consumer prices increased by 0.4 percent in September, up from a 0.2 percent rise in August.

Some sectors saw a deceleration in price growth. Housing and utilities inflation slowed to 6.5 percent, and prices for clothing and footwear decreased by 0.9 percent. The consumer price index excluding housing costs stood at 5.7 percent.