Inflation Iceland 1998
Average inflation: 1.7%
Current Inflation
Inflation is low at 1.7%, below the ECB target of 2%.
Peak and Trough
The highest inflation was in March at 2.4%. The lowest inflation was in September at 0.8%.
- Highest month
- March: 2.4%
- Lowest month
- September: 0.8%
- Difference
- 1.6 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 2.8%. The lowest price increase was in Food and non-alcoholic beverages with an average of 2.8%.
- Highest increase
- Food and non-alcoholic beverages: 2.8%
- Lowest increase
- Food and non-alcoholic beverages: 2.8%
Historical Context
Current inflation is around the 5-year average of 1.8%. This approaches the lowest level since records began (1.6% in 1994).
- 5-year average
- 1.8%
- 10-year average
- 2.2%
- All-time high (1993)
- 4.1%
- All-time low (1994)
- 1.6%
Trend
Inflation has remained relatively stable. Compared to 1997, the difference is minimal (-0.1 percentage point).
- Change vs. previous year
- -0.1 percentage points
- Largest monthly swing
- December: -0.9 percentage points
ECB Target
Inflation is 0.3% below the ECB target of 2.0%. Too low inflation may indicate economic weakness.
Purchasing Power
At this inflation rate, purchasing power gradually decreases. The impact on daily expenses is relatively limited.
What you could buy for €100 this year will cost approximately €101.70 next year at this inflation rate.
Multi-year trend
Monthly figures 1998
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 1997 |
|---|---|---|
| January | 2.2% | +0.2 |
| February | 2.0% | +0.2 |
| March | 2.4% | +0.8 |
| April | 1.8% | -0.4 |
| May | 2.3% | +0.8 |
| June | 2.3% | +0.5 |
| July | 1.8% | -0.1 |
| August | 1.0% | -0.5 |
| September | 0.8% | -0.8 |
| October | 1.0% | -0.9 |
| November | 1.3% | -0.4 |
| December | 1.2% | -0.9 |
| Average | 1.7% |
Data source
Data from OECD. Last updated: 17/12/2025.