The annual inflation rate in Iceland slowed to 3.1 percent in July of 2019 from 3.3 percent in the previous month. It was the lowest inflation rate since March, as cost slowed for housing & utilities (3.4 percent vs 4.0 percent in June); transport (4.1 percent vs 5.0 percent); furniture & household equipment (0.7 percent vs 4.0 percent) and health (1.6 percent vs 1.7 percent). On the other hand, prices advanced faster for food & non-alcoholic beverages (5.5 percent vs 4.8 percent); recreation & culture (2.7 percent vs 2.1 percent); miscellaneous goods & services (4.2 percent vs 3.2 percent) and for restaurants & hotels (2.6 percent vs 0.9 percent). On a monthly basis, consumer prices fell 0.2 percent, compared to a 0.4 percent rise in June. Inflation Rate in Iceland averaged 5 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 3.30 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 2.70 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.