Inflation Iceland 2018
Average inflation: 2.7%
Current Inflation
Inflation is normal at 2.7%, around the ECB target.
Peak and Trough
The highest inflation was in December at 3.7%. The lowest inflation was in May at 2.0%.
- Highest month
- December: 3.7%
- Lowest month
- May: 2.0%
- Difference
- 1.7 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 6.5%. The lowest price increase was in Communication with an average of -8.2%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 6.5%
- Lowest increase
- Communication: -8.2%
Historical Context
Current inflation is 0.8% higher than the 5-year average of 1.9%.
- 5-year average
- 1.9%
- 10-year average
- 4%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2017, inflation has risen by +1.0 percentage point.
- Change vs. previous year
- +1.0 percentage points
- Largest monthly swing
- December: +1.8 percentage points
ECB Target
Inflation is 0.7% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for €100 this year will cost approximately €102.70 next year at this inflation rate.
Multi-year trend
Monthly figures 2018
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2017 |
|---|---|---|
| January | 2.4% | +0.5 |
| February | 2.2% | +0.3 |
| March | 2.8% | +1.2 |
| April | 2.3% | +0.4 |
| May | 2.0% | +0.3 |
| June | 2.6% | +1.1 |
| July | 2.7% | +0.9 |
| August | 2.6% | +0.9 |
| September | 2.7% | +1.3 |
| October | 2.8% | +0.9 |
| November | 3.3% | +1.6 |
| December | 3.7% | +1.8 |
| Average | 2.7% |
Data source
Data from OECD. Last updated: 11/01/2026.