Likely related to migration:

    “Continued monetary policy and fiscal policy tightening remain necessary to return inflation to target and properly anchor inflation expectations.

    Establishing a one-stop to simplify access to migrant integration services, including skills recognition and Icelandic language literacy, will help to optimise the beneficial impact of the increased number of migrants on long-term growth.”

https://www.icelandreview.com/economy/iceland-must-tackle-in...

Not due to a surprise in fertility--fertility actually decreased[0] more than the 2008 report[1] predicted it would.

[0] https://knoema.com/atlas/Iceland/Fertility-rate [1] https://www.statice.is/publications/publication/inhabitants/...

"The number of people immigrating to Iceland reached a new high in 2022 when more than 17,000 people immigrated to the country"

So 4.25% of their population immigrated there in 2022 alone.

Since 2017, 80,070 people have immigrated there, or 20% of the population.

https://www.statista.com/statistics/595139/number-of-immigra...

Well, if a mommy and a daddy like each other very much..