Inflation Iceland 2005
Average inflation: 4.0%
Current Inflation
Inflation is high at 4.0%, well above the ECB target.
Peak and Trough
The highest inflation was in September at 4.8%. The lowest inflation was in June at 2.8%.
- Highest month
- September: 4.8%
- Lowest month
- June: 2.8%
- Difference
- 2.0 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 15.0%. The lowest price increase was in Food and non-alcoholic beverages with an average of -2.6%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 15.0%
- Lowest increase
- Food and non-alcoholic beverages: -2.6%
Historical Context
Current inflation is around the 5-year average of 4.2%.
- 5-year average
- 4.2%
- 10-year average
- 3.5%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2004, inflation has risen by +0.9 percentage point.
- Change vs. previous year
- +0.9 percentage points
- Largest monthly swing
- March: +2.8 percentage points
ECB Target
Inflation is 2.0% 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 €100 this year will cost approximately €104.00 next year at this inflation rate.
Multi-year trend
Monthly figures 2005
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2004 |
|---|---|---|
| January | 4.0% | +1.6 |
| February | 4.5% | +2.3 |
| March | 4.6% | +2.8 |
| April | 4.3% | +2.1 |
| May | 2.9% | -0.3 |
| June | 2.8% | -1.2 |
| July | 3.4% | -0.2 |
| August | 3.6% | -0.1 |
| September | 4.8% | +1.4 |
| October | 4.7% | +1.0 |
| November | 4.2% | +0.5 |
| December | 4.1% | +0.2 |
| Average | 4.0% |
Data source
Data from OECD. Last updated: 11/01/2026.