Inflation Iceland 2017

Average inflation: 1.7%

Current Inflation

Inflation is low at 1.7%, below the ECB target of 2%.

Peak and Trough

The highest inflation was in January at 1.9%. The lowest inflation was in September at 1.4%.

Highest month
January: 1.9%
Lowest month
September: 1.4%
Difference
0.5 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 11.9%. The lowest price increase was in Communication with an average of -16.2%.

Highest increase
Housing, water, electricity, gas and other fuels: 11.9%
Lowest increase
Communication: -16.2%

Historical Context

Current inflation is around the 5-year average of 2.2%. This approaches the lowest level since records began (1.6% in 2015).

5-year average
2.2%
10-year average
5%
All-time high (2008)
12.6%
All-time low (2015)
1.6%

Trend

Inflation has remained relatively stable. Compared to 2016, the difference is minimal (+0.0 percentage point).

Change vs. previous year
+0.0 percentage points
Largest monthly swing
July: +0.7 percentage points

ECB Target

Inflation is 0.3% 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 €100 this year will cost approximately €101.70 next year at this inflation rate.

Multi-year trend

Monthly figures 2017

Inflation by category

Food and non-alcoholic beverages
-2.4%
-4.1vs avg.
More details →
Alcoholic beverages, tobacco and narcotics
4.5%
+2.8vs avg.
More details →
Clothing and footwear
-4.6%
-6.3vs avg.
More details →
Housing, water, electricity, gas and other fuels
11.9%
+10.2vs avg.
More details →
Furnishings, household equipment and maintenance
-7.8%
-9.5vs avg.
More details →
Health
0.5%
-1.2vs avg.
More details →
Transport
-4.6%
-6.3vs avg.
More details →
Communication
-16.2%
-17.9vs avg.
More details →
Recreation and culture
-1.4%
-3.1vs avg.
More details →
Education
2.9%
+1.2vs avg.
More details →
Restaurants and hotels
3.2%
+1.5vs avg.
More details →
Miscellaneous goods and services
1.4%
-0.3vs avg.
More details →

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

Month overview

Month Inflation Difference vs. 2016
January 1.9% -0.2
February 1.9% -0.3
March 1.6% +0.1
April 1.9% +0.3
May 1.7% 0.0
June 1.5% -0.1
July 1.8% +0.7
August 1.7% +0.7
September 1.4% -0.4
October 1.9% +0.1
November 1.7% -0.4
December 1.9% 0.0
Average 1.7%

Data source

Data from OECD. Last updated: 11/01/2026.

See also