Annual inflation rate in Iceland decreased to 2.0 percent in December of 2019 from 2.7 percent in the previous month. It was the lowest inflation rate since May 2018, as prices advanced at a softer pace for housing & utilities (2.6 percent vs 3.2 percent); transport (0.5 percent vs 1.7 percent); food & non-alcoholic beverages (1.0 percent vs 2.5 percent); recreation & culture (2.8 percent vs 3.0 percent) and miscellaneous goods & services (3.8 percent vs 3.9 percent). Meantime, inflation was steady for restaurants & hotels (at 2.4 percent). On a monthly basis, consumer prices edged up 0.1 percent, the same as in the preceding month. Inflation Rate in Iceland averaged 4.97 percent from 1989 until 2019, reaching an all time high of 25.20 percent in December of 1989 and a record low of -0.06 percent in November of 1994.
Inflation Rate in Iceland is expected to be 2.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Iceland to stand at 2.60 in 12 months time. In the long-term, the Iceland Inflation Rate is projected to trend around 2.30 percent in 2020, according to our econometric models.