Inflation Iceland 1989
Average inflation: 20.7%
Current Inflation
Inflation is very high at 20.7%, far above the ECB target.
Peak and Trough
The highest inflation was in December at 25.2%. The lowest inflation was in August at 17.6%.
- Highest month
- December: 25.2%
- Lowest month
- August: 17.6%
- Difference
- 7.6 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food and non-alcoholic beverages with an average of 19.0%. The lowest price increase was in Food and non-alcoholic beverages with an average of 19.0%.
- Highest increase
- Food and non-alcoholic beverages: 19.0%
- Lowest increase
- Food and non-alcoholic beverages: 19.0%
Historical Context
Current inflation is around the 5-year average of 20.7%. This approaches the highest level since records began (20.7% in 1989).
- 5-year average
- 20.7%
- 10-year average
- 20.7%
- All-time high (1989)
- 20.7%
- All-time low (1989)
- 20.7%
Trend
ECB Target
Inflation is 18.7% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for €100 this year will cost approximately €120.70 next year at this inflation rate.
Multi-year trend
Monthly figures 1989
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation |
|---|---|
| January | 18.3% |
| February | 19.0% |
| March | 21.2% |
| April | 22.0% |
| May | 22.3% |
| June | 21.8% |
| July | 18.5% |
| August | 17.6% |
| September | 19.2% |
| October | 21.1% |
| November | 22.8% |
| December | 25.2% |
| Average | 20.7% |
Data source
Data from OECD. Last updated: 17/12/2025.