23.07.202609:29:19UTC+00Iceland Inflation Rate at 4-Month High

The annual inflation rate edged up to 5.3% year-on-year in July 2026 from 5.2% in June, reaching its highest level since March. Price growth accelerated in several categories, including transport (10.0% vs 9.9% in June), recreation, sport and culture (3.2% vs 2.8%), restaurants and accommodation services (5.1% vs 4.6%), information and communication (4.8% vs 3.6%), and alcoholic beverages, tobacco and narcotics (3.7% vs 3.3%).

By contrast, inflation slowed for furnishings, household equipment and routine household maintenance (0.1% vs 0.2%), health (4.0% vs 4.1%), personal care, social protection and miscellaneous goods and services (5.0% vs 5.7%), and education (4.1% vs 4.2%). Deflation in clothing and footwear deepened (-1.6% vs -1.2%), while inflation remained unchanged for food and non-alcoholic beverages at 3.9% and for housing and utilities at 6.5%. On a monthly basis, consumer prices rose 0.4% in July, easing from a 0.9% increase in June.