The annual inflation rate in Iceland rose to 3.3% in April 2019 from 2.9% in the previous month. It is the highest inflation rate since January, as prices advanced faster for housing & utilities (4.1% vs 3.9% in March) and transport (5.8% vs 3.2%), mostly due to higher cost of international flights (9.1% vs -9.8%); gasoline (7.6% vs 6.3%) and diesel (9.9% vs 10.1%). Meanwhile, cost slowed for food & non-alcoholic beverages (3.9% vs 4.2%); miscellaneous goods & services (2.5% vs 3%); health (1.7% vs 1.9%) and alcoholic beverages & tobacco (18% vs 1.9%). On a monthly basis, consumer prices went up 0.4 percent, after increasing 0.5 percent in the prior month. Inflation Rate in Iceland averaged 5.01 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 2.90 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 2.70 percent in 2020, according to our econometric models.