Inflation Iceland 2004
Average inflation: 3.1%
Inflation in 2004
Inflation is high at 3.1%, well above the ECB target.
Peak and Trough
The highest inflation was in June at 4.0%. The lowest inflation was in March at 1.8%.
- Highest month
- June: 4.0%
- Lowest month
- March: 1.8%
- Difference
- 2.2 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Housing, water, electricity, gas and other fuels with an average of 7.5%. The lowest price increase was in Clothing and footwear with an average of -0.2%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 7.5%
- Lowest increase
- Clothing and footwear: -0.2%
Historical Context
Inflation is 1.3 percentage points lower than the 5-year average of 4.4%.
- 5-year average
- 4.4%
- 10-year average
- 3.3%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Over the period 2002-2004, inflation shows a downward trend. Compared to 2003, inflation has risen by 1.0 percentage points.
- Change vs. previous year
- +1.0 percentage points
- Largest monthly swing
- June: +2.3 percentage points
ECB Target
Inflation is 1.1 percentage points above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for ISK 100 this year will cost approximately ISK 103 next year at this inflation rate.
Multi-year trend
Monthly figures 2004
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2003 |
|---|---|---|
| January | 2.4% | +1.0 |
| February | 2.2% | +0.7 |
| March | 1.8% | -0.4 |
| April | 2.2% | -0.1 |
| May | 3.2% | +1.0 |
| June | 4.0% | +2.3 |
| July | 3.6% | +2.0 |
| August | 3.7% | +1.7 |
| September | 3.4% | +1.2 |
| October | 3.7% | +1.6 |
| November | 3.7% | +1.1 |
| December | 3.9% | +1.1 |
| Average | 3.1% |
Data source
Data from OECD. Last updated: 13/01/2026.