Inflation Iceland 2012

Average inflation: 5.2%

Current Inflation

Inflation is very high at 5.2%, far above the ECB target.

Peak and Trough

The highest inflation was in January at 6.5%. The lowest inflation was in August at 4.1%.

Highest month
January: 6.5%
Lowest month
August: 4.1%
Difference
2.4 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Transport with an average of 7.5%. The lowest price increase was in Health with an average of 3.2%.

Highest increase
Transport: 7.5%
Lowest increase
Health: 3.2%

Historical Context

Current inflation is 2.7% lower than the 5-year average of 7.9%.

5-year average
7.9%
10-year average
6%
All-time high (2008)
12.6%
All-time low (1994)
1.6%

Trend

Inflation has remained relatively stable. Compared to 2011, the difference is minimal (+1.2 percentage point).

Change vs. previous year
+1.2 percentage points
Largest monthly swing
January: +4.7 percentage points

ECB Target

Inflation is 3.2% 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 €105.20 next year at this inflation rate.

Multi-year trend

Monthly figures 2012

Inflation by category

Food and non-alcoholic beverages
6.1%
+0.9vs avg.
More details →
Alcoholic beverages, tobacco and narcotics
4.5%
-0.7vs avg.
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Clothing and footwear
3.2%
-2.0vs avg.
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Housing, water, electricity, gas and other fuels
5.2%
+0.0vs avg.
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Furnishings, household equipment and maintenance
4.1%
-1.1vs avg.
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Health
3.2%
-2.0vs avg.
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Transport
7.5%
+2.3vs avg.
More details →
Communication
5.7%
+0.5vs avg.
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Recreation and culture
3.4%
-1.8vs avg.
More details →
Education
7.3%
+2.1vs avg.
More details →
Restaurants and hotels
5.3%
+0.1vs avg.
More details →
Miscellaneous goods and services
5.3%
+0.1vs avg.
More details →

Inflation differs per product group. Click on a category for the historical trend.

Month overview

Month Inflation Difference vs. 2011
January 6.5% +4.7
February 6.3% +4.4
March 6.4% +4.1
April 6.4% +3.6
May 5.4% +2.0
June 5.4% +1.2
July 4.6% -0.4
August 4.1% -0.9
September 4.3% -1.4
October 4.2% -1.1
November 4.5% -0.7
December 4.2% -1.0
Average 5.2%

Data source

Data from OECD. Last updated: 13/01/2026.

See also