FX.co ★ Iceland Inflation Rate Steady at 5.2%

Iceland’s annual inflation rate stood at 5.2% in February 2026, unchanged from January’s peak and remaining at its highest level since September 2024. Price growth accelerated in several categories, including recreation and culture (3.6% vs 3.4% in January), restaurants and accommodation (6.2% vs 6.0%), health (4.5% vs 3.5%), clothing and footwear (3.7% vs 0.8%), and personal care, social protection, and miscellaneous goods and services (4.5% vs 3.6%).

Prices were stable for housing and utilities (7.2%) and for education services (3.9%). In contrast, inflation moderated in transport (4.2% vs 4.6%), food and non-alcoholic beverages (5.6% vs 5.8%), alcoholic beverages and tobacco (3.6% vs 4.1%), and information and communication (2.5% vs 2.7%). Deflation deepened in furnishings, household equipment, and routine household maintenance (-0.8% vs -0.4%).

On a monthly basis, consumer prices increased by 0.9% in February, up from a 0.4% rise in the previous month.