Inflation Iceland 2012
Average inflation: 5.2%
Inflation in 2012
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
Inflation is 2.7 percentage points 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
Over the period 2010-2012, inflation has remained relatively stable. Compared to 2011, inflation has risen by 1.2 percentage points.
- Change vs. previous year
- +1.2 percentage points
- Largest monthly swing
- January: +4.7 percentage points
ECB Target
Inflation is 3.2 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 105 next year at this inflation rate.
Multi-year trend
Monthly figures 2012
Inflation by category
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.