Inflation Iceland 2009
Average inflation: 12.2%
Inflation in 2009
Inflation is very high at 12.2%, far above the ECB target.
Peak and Trough
The highest inflation was in January at 18.6%. The lowest inflation was in December at 7.5%.
- Highest month
- January: 18.6%
- Lowest month
- December: 7.5%
- Difference
- 11.1 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Alcoholic beverages, tobacco and narcotics with an average of 29.6%. The lowest price increase was in Housing, water, electricity, gas and other fuels with an average of 0.7%.
- Highest increase
- Alcoholic beverages, tobacco and narcotics: 29.6%
- Lowest increase
- Housing, water, electricity, gas and other fuels: 0.7%
Historical Context
Inflation is 4.1 percentage points higher than the 5-year average of 8.1%.
- 5-year average
- 8.1%
- 10-year average
- 6.3%
- All-time high (1990)
- 15.9%
- All-time low (1994)
- 1.6%
Trend
Over the period 2007-2009, inflation shows an upward trend. Compared to 2008, inflation has fallen by 0.4 percentage points.
- Change vs. previous year
- -0.4 percentage points
- Largest monthly swing
- January: +12.8 percentage points
ECB Target
Inflation is 10.2 percentage points 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 ISK 100 this year will cost approximately ISK 112 next year at this inflation rate.
Multi-year trend
Monthly figures 2009
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2008 |
|---|---|---|
| January | 18.6% | +12.8 |
| February | 17.6% | +10.8 |
| March | 15.2% | +6.4 |
| April | 11.9% | +0.2 |
| May | 11.7% | -0.6 |
| June | 12.2% | -0.6 |
| July | 11.3% | -2.2 |
| August | 10.9% | -3.6 |
| September | 10.8% | -3.3 |
| October | 9.7% | -6.2 |
| November | 8.6% | -8.6 |
| December | 7.5% | -10.6 |
| Average | 12.2% |
Data source
Data from OECD. Last updated: 13/01/2026.