Inflation Iceland 2007
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 February at 7.4%. The lowest inflation was in August at 3.4%.
- Highest month
- February: 7.4%
- Lowest month
- August: 3.4%
- Difference
- 4.0 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 11.6%. The lowest price increase was in Food and non-alcoholic beverages with an average of -1.0%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 11.6%
- Lowest increase
- Food and non-alcoholic beverages: -1.0%
Historical Context
Current inflation is 0.9% higher than the 5-year average of 4.2%.
- 5-year average
- 4.2%
- 10-year average
- 4.3%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2006, inflation has risen by -1.6 percentage point.
- Change vs. previous year
- -1.6 percentage points
- Largest monthly swing
- August: -5.2 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 2007
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2006 |
|---|---|---|
| January | 6.9% | +2.5 |
| February | 7.4% | +3.3 |
| March | 5.9% | +1.5 |
| April | 5.3% | -0.2 |
| May | 4.6% | -3.0 |
| June | 4.0% | -4.1 |
| July | 3.8% | -4.6 |
| August | 3.4% | -5.2 |
| September | 4.2% | -3.4 |
| October | 4.5% | -2.6 |
| November | 5.2% | -2.1 |
| December | 5.8% | -1.2 |
| Average | 5.1% |
Data source
Data from OECD. Last updated: 11/01/2026.