28.08.202509:00:00UTC+00Iceland's Inflation Rate Cools Down to 3.8% in August 2025

In a surprising turn of events, Iceland's inflation rate eased to 3.8% in August 2025, according to the latest data released on 28 August. This represents a slight dip from the 4.0% rate recorded in July 2025. The figures are a welcome sign for the Icelandic economy, which has been battling inflationary pressures over the past year.

The current consumer price index (CPI) reflects a year-over-year comparison for August 2025, showing that inflation has moderated compared to the same month a year ago. This decline may offer some relief to consumers and businesses alike, who have been coping with fluctuating prices in recent months.

Economists will be closely monitoring whether this downward trend in inflation will persist, as it could vindicate the central bank's policies and provide a boost to consumer confidence. The moderate dip in inflation suggests that the economic environment is stabilizing, but further analysis will be necessary to confirm a long-term trend.