Consumer prices in Iceland increased 3.3 year-on-year in June 2019, slightly below the 3.6 percent rise in the previous month. Cost slowed for housing & utilities (4.0 percent vs 4.5 percent in May); transport (5.0 percent vs 6.0 percent); food & non-alcoholic beverages (4.7 percent vs 4.8 percent); restaurants & hotels (0.9 percent vs 2.8 percent) and for clothing & footwear (2.1 percent vs 2.8 percent). On the other hand, prices advanced faster for recreation & culture (2.1 percent vs 1.5 percent); miscellaneous goods & services (3.2 percent vs 2.5 percent); furniture & household equipment (4.0 percent vs 1.7 percent); health (1.7 percent vs 1.5 percent) and alcoholic beverages & tobacco (2.0 percent vs 1.7 percent). On a monthly basis, consumer prices went up 0.4 percent, following a 0.2 percent rise in May. 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 2.80 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.