Inflation Iceland 2000
Average inflation: 5.1%
Current Inflation
Inflation is very high at 5.1%, far above the ECB target.
Peak and Trough
The highest inflation was in March at 5.9%. The lowest inflation was in September at 3.9%.
- Highest month
- March: 5.9%
- Lowest month
- September: 3.9%
- Difference
- 2.0 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 4.1%. The lowest price increase was in Food and non-alcoholic beverages with an average of 4.1%.
- Highest increase
- Food and non-alcoholic beverages: 4.1%
- Lowest increase
- Food and non-alcoholic beverages: 4.1%
Historical Context
Current inflation is 2.3% higher than the 5-year average of 2.8%.
- 5-year average
- 2.8%
- 10-year average
- 3.2%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 1999, inflation has risen by +1.9 percentage point.
- Change vs. previous year
- +1.9 percentage points
- Largest monthly swing
- January: +4.5 percentage points
ECB Target
Inflation is 3.1% 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 €105.10 next year at this inflation rate.
Multi-year trend
Monthly figures 2000
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 1999 |
|---|---|---|
| January | 5.8% | +4.5 |
| February | 5.6% | +4.2 |
| March | 5.9% | +4.4 |
| April | 5.9% | +3.9 |
| May | 5.9% | +4.0 |
| June | 5.4% | +2.8 |
| July | 5.7% | +2.5 |
| August | 4.7% | +0.6 |
| September | 3.9% | -1.1 |
| October | 4.2% | -1.0 |
| November | 4.5% | -0.5 |
| December | 4.2% | -1.3 |
| Average | 5.1% |
Data source
Data from OECD. Last updated: 17/12/2025.