FX.co ★ Iceland Producer Inflation Slows to 4.6%

Iceland’s producer prices rose 4.6% year-on-year in January 2026, easing from a 5.9% increase in December. Price growth for marine products slowed to 19.8%, down from 21.8% in the previous month, while prices for exported products overall rose by 4.4%, compared with 6.0% in December.

Deflation deepened in several categories. Exported products excluding marine products fell further, with prices declining 3.6% year-on-year after a 2.2% drop in December. Prices for products sold on the domestic market also remained in deflation, though the pace softened slightly to -5.0% from -5.5%.

Food production costs continued to rise but at a more moderate rate, with price growth slowing to 7.3% from 7.7%. The metal industry edged back into positive territory, recording a 0.2% increase after a 1.6% decline the month before. In contrast, price growth in other manufacturing industries eased, slowing to 7.3% from 7.7%.

On a monthly basis, producer prices rose just 0.2% in January, the smallest increase since late July and a sharp deceleration from the 1.4% gain recorded in December.