The latest indicators from Statistics Iceland show a month-by-month increase in the Consumer Price Index of 0.85%.
Inflation now rests at 9.9%, where it last sat in July 2022. Inflation rates saw slight decreases in the fall of 2022, but continued to rise throughout the winter.
See also: September Inflation Drops to 9.3%
Consumers in Iceland have especially felt the effect of inflation on food prices, with staples like milk, eggs, and cheese being especially affected at 4.4%.
Other consumer goods affected include alcohol (5,5%), tobacco (5.5%), and new vehicles (9.8%).
However, Statistics Iceland points out that many clearance sales after the holiday season have driven down the cost of some consumer goods in Iceland, such as clothing (-8.4%) and household appliances (-6.2%). Airfares have likewise decreased by around 9%.
With Efling trade union still in negotiations, read more about how interest rates could affect contract re-negotiations.
