The inflation rate in Iceland rose to 5.4% year-on-year in March 2026 from 5.2% in the previous two months. This marked the highest reading since September 2024, as prices increased for transport (6.1% vs 4.2% in February), food and non-alcoholic beverages (5.8% vs 5.6%), alcoholic beverages and tobacco (3.7% vs 3.6%), information and communication (2.5% vs 2.4%), and personal care, social protection, and miscellaneous goods and services (5.1% vs 4.4%). At the same time, prices held steady for education services (3.8%), while deflation eased in furnishings, household equipment, and routine maintenance (-0.1% vs -0.8%). Meanwhile, inflation slowed for housing and utilities (6.9% vs 7.2%), recreation and culture (3.6% vs 3.7%), restaurants and accommodation services (5.7% vs 6.3%), health (4.4% vs 4.5%), and clothing and footwear (2.3% vs 3.6%). On a monthly basis, consumer prices rose by 0.6% in March, easing from 0.9% in the previous month.