Inflation Iceland 2005
Average inflation: 4.0%
Inflation in 2005
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
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
Over the period 2003-2005, inflation shows an upward trend. Compared to 2004, inflation has risen by 0.9 percentage points.
- Change vs. previous year
- +0.9 percentage points
- Largest monthly swing
- March: +2.8 percentage points
ECB Target
Inflation is 2.0 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 104 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: 13/01/2026.