25.11.202509:49:09UTC+00Iceland Producer Inflation Slows in October

In October 2025, Iceland experienced a 3.0% year-on-year increase in producer prices, a slight slowdown from the 3.1% rise observed in September, which marked a five-month high. This period of rising producer prices has continued for three months, although the rate of increase has decelerated. Notably, the cost of food production moderated to an 8.8% rise from 10.4% in the previous month. Similarly, prices for products sold domestically grew less rapidly, at 6.3% compared to 7.2% in September. The metal industry experienced further cost reductions, with a decline of 4.4% from a previous decrease of 2.3%, and exported products, excluding marine items, fell by 5.3%, worsening from a 4.9% drop. Contrarily, producer inflation quickened for marine products, increasing to 14.3% from 13%, and for exported products, which rose to 1.5% from 1.3%. Furthermore, the decline in prices for other manufacturing industries eased, showing a decrease of 2.5% compared to a 4.2% fall previously. On a month-to-month basis, producer prices rose by 1.2% in October, following a 0.9% increase in the prior month.