Iceland Producer Inflation Slows to 4.6%

Iceland’s producer price rose 4.6% year-on-year in January 2026, slowing from 5.9% in December. Price growth for marine products eased to 19.8% from 21.8% in December, while exported products saw a slower rise of 4.4% compared with 6.0%. Deflation persisted for exported products excluding marine products, which fell further to -3.6% from -2.2%, and for products sold domestically, which eased to -5.0% from -5.5%. Food production costs continued to rise but at a more moderate pace of 7.3% from 7.7%. The metal industry moved slightly into positive territory at 0.2%, after a decline of 1.6% in the prior month, while growth in other manufacturing industries softened to 7.3% from 7.7%. On a monthly basis, producer prices increased by just 0.2% in January, the smallest gain since late July, sharply easing from a 1.4% rise in December.