The annual inflation rate in Iceland edged up to 4.3% in October 2025 from 4.1% in the previous month. It marked the highest reading since January, as prices increased at a faster pace for housing and utilities (7.1% vs 6.5% in September), alcoholic beverages and tobacco (5.8% vs 5.5%), health (3% vs 2.6%), and recreation and culture (3.4% vs 2.9%). Moreover, costs rebounded for both clothing and footwear (0.2% vs -0.2%) and furnishing, household equipment, etc. (1.3% vs -0.6%). On the other hand, prices moderated for food and non-alcoholic beverages (5.8% vs 6.1%), transport (0.8% vs 1.1%), communications (0.8% vs 1.1%), hotels, caf