The annual inflation rate in Iceland eased for the third consecutive month to 3.8% in March 2025, from a four-year low of 4.2% in the previous month.
This marked the lowest reading since December 2020, as prices moderated for housing and utilities (7.6% vs 8.6% in February), transport (1% vs 1.7%), alcoholic beverages and tobacco (5.6% vs 5.7%), furnishing and household equipment (0.4% vs 1.5%), health (3.5% vs 4.3%), and miscellaneous goods and services (5.1% vs 5.3%).
Meanwhile, costs edged higher for food and non-alcoholic beverages (4.9% vs 4.6%) and communications (2.4% vs 2.2%), while deflation slowed for clothing and footwear (-2.3% vs -2.5%) and hotels, cafes and restaurants (-0.4% vs -0.9%).
On a monthly basis, consumer prices eased to 0.4% in February 2025 from 0.9% in the previous month.