Inflation Iceland 2008
Average inflation: 12.6%
Current Inflation
Inflation is very high at 12.6%, far above the ECB target.
Peak and Trough
The highest inflation was in December at 18.1%. The lowest inflation was in January at 5.8%.
- Highest month
- December: 18.1%
- Lowest month
- January: 5.8%
- Difference
- 12.3 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Transport with an average of 20.0%. The lowest price increase was in Education with an average of 1.8%.
- Highest increase
- Transport: 20.0%
- Lowest increase
- Education: 1.8%
Historical Context
Current inflation is 6.3% higher than the 5-year average of 6.3%.
- 5-year average
- 6.3%
- 10-year average
- 5.4%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2007, inflation has risen by +7.5 percentage point.
- Change vs. previous year
- +7.5 percentage points
- Largest monthly swing
- December: +12.3 percentage points
ECB Target
Inflation is 10.6% 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 €112.60 next year at this inflation rate.
Multi-year trend
Monthly figures 2008
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2007 |
|---|---|---|
| January | 5.8% | -1.1 |
| February | 6.8% | -0.6 |
| March | 8.8% | +2.9 |
| April | 11.7% | +6.4 |
| May | 12.3% | +7.7 |
| June | 12.8% | +8.8 |
| July | 13.5% | +9.7 |
| August | 14.5% | +11.1 |
| September | 14.1% | +9.9 |
| October | 15.9% | +11.4 |
| November | 17.2% | +12.0 |
| December | 18.1% | +12.3 |
| Average | 12.6% |
Data source
Data from OECD. Last updated: 13/01/2026.