The annual inflation rate in Iceland rose to 4.1% in September 2025, from August’s three-month low of 3.8%. Main upward pressure came from prices of food and non-alcoholic beverages (6.1% vs 5.5% in August), housing and utilities (6.5% vs 6.4%), recreation and culture (2.9% vs 2.6%), and miscellaneous goods and services (4.3% vs 4.2%), alongside a sharp rebound in prices of hotels, caf