The annual inflation rate in Iceland rose to 4.2% in June 2025, from a four-year low of 3.8% in the previous month.
Upward pressure mainly came from food and non-alcoholic beverages (6% vs 5.9% in May), transport (2% vs 0.9%), alcoholic beverages and tobacco (5.8% vs 5.5%), communications (2.7% vs 1.7%), recreation and culture (3.3% vs 2.9%), and miscellaneous goods and services (4.1% vs 4%).
In addition, costs rebounded for clothing and footwear (1.4% vs -0.6%), while deflation eased for furnishings and household equipment (-0.3% vs -0.8%).
Meanwhile, prices were stable for housing and utilities (7.2%) and health (3.1%).
On a monthly basis, consumer prices rose 0.8% in June 2025, from a four-month low of 0.2% in the previous month.