Consumer prices in Iceland rose 4.5% year on year in December, up from 3.7% in the previous month, the highest year-on-year increase since January. Price increases are mainly driven by the following categories: housing, water, electricity, gas and other fuels; medical care, communications, entertainment; hotels, cafes and restaurants; and miscellaneous goods and services. Meanwhile, prices of clothing, footwear, furniture and household equipment, and transportation changed from decline to increase; price increases for alcohol, tobacco and education services remained the same as the previous month. Inflation in food and non-alcoholic beverages has slowed to 5.5%. Looking at monthly data, consumer prices rose 1.2% month-on-month in December, the fastest month-on-month growth rate in over a year, rebounding from the previous month's 0.5% month-on-month decline.

Consumer prices in Iceland rose 4.5% year on year in December, up from 3.7% in the previous month, the highest year-on-year increase since January. Price increases are mainly driven by the following categories: housing, water, electricity, gas and other fuels; medical care, communications, entertainment; hotels, cafes and restaurants; and miscellaneous goods and services. Meanwhile, prices of clothing, footwear, furniture and household equipment, and transportation changed from decline to increase; price increases for alcohol, tobacco and education services remained the same as the previous month. Inflation in food and non-alcoholic beverages has slowed to 5.5%. Looking at monthly data, consumer prices rose 1.2% month-on-month in December, the fastest month-on-month growth rate in over a year, rebounding from the previous month's 0.5% month-on-month decline.