Inflation Iceland 2016
Average inflation: 1.7%
Inflation in 2016
Inflation is low at 1.7%, below the ECB target of 2%.
Peak and Trough
The highest inflation was in February at 2.2%. The lowest inflation was in August at 1.0%.
- Highest month
- February: 2.2%
- Lowest month
- August: 1.0%
- Difference
- 1.2 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 6.6%. The lowest price increase was in Communication with an average of -12.9%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 6.6%
- Lowest increase
- Communication: -12.9%
Historical Context
Inflation is 1.2 percentage points lower than the 5-year average of 2.9%. This approaches the lowest level since records began (1.6% in 2015).
- 5-year average
- 2.9%
- 10-year average
- 5.4%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Over the period 2014-2016, inflation has remained relatively stable. Compared to 2015, inflation has risen by 0.1 percentage points.
- Change vs. previous year
- +0.1 percentage points
- Largest monthly swing
- February: +1.4 percentage points
ECB Target
Inflation is 0.3 percentage points below the ECB target of 2.0%. Too low inflation may indicate economic weakness.
Purchasing Power
At this inflation rate, purchasing power gradually decreases. The impact on daily expenses is relatively limited.
What you could buy for ISK 100 this year will cost approximately ISK 102 next year at this inflation rate.
Multi-year trend
Monthly figures 2016
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2015 |
|---|---|---|
| January | 2.1% | +1.3 |
| February | 2.2% | +1.4 |
| March | 1.5% | -0.1 |
| April | 1.6% | +0.2 |
| May | 1.7% | +0.1 |
| June | 1.6% | +0.1 |
| July | 1.1% | -0.8 |
| August | 1.0% | -1.2 |
| September | 1.8% | -0.1 |
| October | 1.8% | 0.0 |
| November | 2.1% | +0.1 |
| December | 1.9% | -0.1 |
| Average | 1.7% |
Data source
Data from OECD. Last updated: 13/01/2026.