Inflation Iceland 2006
Average inflation: 6.7%
Current Inflation
Inflation is very high at 6.7%, far above the ECB target.
Peak and Trough
The highest inflation was in August at 8.6%. The lowest inflation was in February at 4.1%.
- Highest month
- August: 8.6%
- Lowest month
- February: 4.1%
- Difference
- 4.5 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 12.0%. The lowest price increase was in Clothing and footwear with an average of 0.0%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 12.0%
- Lowest increase
- Clothing and footwear: 0.0%
Historical Context
Current inflation is 2.5% higher than the 5-year average of 4.2%.
- 5-year average
- 4.2%
- 10-year average
- 3.9%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2005, inflation has risen by +2.7 percentage point.
- Change vs. previous year
- +2.7 percentage points
- Largest monthly swing
- June: +5.3 percentage points
ECB Target
Inflation is 4.7% 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 €106.70 next year at this inflation rate.
Multi-year trend
Monthly figures 2006
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2005 |
|---|---|---|
| January | 4.4% | +0.4 |
| February | 4.1% | -0.4 |
| March | 4.4% | -0.2 |
| April | 5.5% | +1.2 |
| May | 7.6% | +4.7 |
| June | 8.1% | +5.3 |
| July | 8.4% | +5.0 |
| August | 8.6% | +5.0 |
| September | 7.6% | +2.8 |
| October | 7.1% | +2.4 |
| November | 7.3% | +3.1 |
| December | 7.0% | +2.9 |
| Average | 6.7% |
Data source
Data from OECD. Last updated: 11/01/2026.