The inflation rate in Iceland rose to 4.5% year-on-year in December 2025 from 3.7% in the previous month. This marked the highest reading since January as prices increased for housing, water, electricity, gas and other fuels (7.1% vs 6.5% in November), health (4.2% vs 3.7%), communications (1% vs 0.7%), recreation and culture (2.8% vs 2.3%), hotels, caf