Consumer price inflation in Iceland remained steady in December, following a decline over the previous four months, largely due to a significant decrease in education expenses and lower prices in the hospitality sector, according to preliminary data from Statistics Iceland released on Thursday.
The consumer price index (CPI) increased by 4.8% year-on-year, maintaining the same rate as in November. Excluding housing costs, the CPI rose by 2.8% compared to the previous year.
Among the CPI components, education costs experienced the most substantial decrease, dropping by 11.8%. Prices in the hotels, cafes, and restaurants sector saw a slight reduction of 0.6%. In contrast, utility costs recorded the highest increase, climbing by 10.5%.
On a month-to-month basis, the CPI went up by 0.39%, while the CPI excluding housing costs increased by 0.37%. The expense of owner-occupied housing advanced by 0.5%, and airfares rose by 0.14% from the prior month.
The average inflation rate for 2024 is projected at 5.9%, compared to 8.8% in 2023 and 8.3% in 2022. When excluding housing costs, inflation was at 3.8%, as opposed to 7.8% and 6.1% over the last two years.
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