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.
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.