The annual inflation rate in Faroe Islands rose to 1.1% in the third quarter of 2025 from an over four-year low of 0.7% in the previous three-month period. Upward pressure mainly came from faster price increases in recreation & culture (4.9% vs 0.4% in Q2), a rebound in transport costs (0.5% vs -0.6%), and an easing decline in clothing and footwear prices (-1.7% vs -3.3%). In contrast, inflation slowed for restaurants and hotels (5.6% vs 7.2%), communication (0.9% vs 1.6%), alcoholic beverages and tobacco (4.7% vs 4.9%), and food and non-alcoholic beverages (4.6% vs 4.7%). On a quarterly basis, consumer prices increased by 0.2% in Q3, recovering from a 0.1% drop in the prior quarter.
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