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Iceland's annual inflation rate rebounded to 4.2% in April 2025, up from a four-year low of 3.8% in the previous month, driven by faster price growth in transport (2.6% vs 1% in March), food and non-alcoholic beverages (5.7% vs 4.9%), recreation and culture (3.1% vs 2.9%), and furnishing and household equipment (1.7% vs 0.4%). Meanwhile, these upward pressures were partially offset by slower price increases in housing and utilities (7.2% vs 7.6%); health (3.2% vs 3.5%); and a further drop in prices for hotels, cafés and restaurants (-0.5% vs -0.4%). On a monthly basis, consumer prices rose by 0.9% in April, up from 0.4% in March.