Inflation Iceland 2020
Average inflation: 2.9%
Current Inflation
Inflation is normal at 2.9%, around the ECB target.
Peak and Trough
The highest inflation was in October at 3.6%. The lowest inflation was in January at 1.7%.
- Highest month
- October: 3.6%
- Lowest month
- January: 1.7%
- Difference
- 1.9 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Furnishings, household equipment and maintenance with an average of 6.1%. The lowest price increase was in Communication with an average of -4.8%.
- Highest increase
- Furnishings, household equipment and maintenance: 6.1%
- Lowest increase
- Communication: -4.8%
Historical Context
Current inflation is around the 5-year average of 2.4%.
- 5-year average
- 2.4%
- 10-year average
- 2.9%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Inflation has remained relatively stable. Compared to 2019, the difference is minimal (-0.1 percentage point).
- Change vs. previous year
- -0.1 percentage points
- Largest monthly swing
- January: -1.7 percentage points
ECB Target
Inflation is 0.9% 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 €102.90 next year at this inflation rate.
Multi-year trend
Monthly figures 2020
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2019 |
|---|---|---|
| January | 1.7% | -1.7 |
| February | 2.4% | -0.6 |
| March | 2.1% | -0.8 |
| April | 2.3% | -1.0 |
| May | 2.6% | -1.0 |
| June | 2.7% | -0.6 |
| July | 3.0% | -0.1 |
| August | 3.2% | 0.0 |
| September | 3.5% | +0.5 |
| October | 3.6% | +0.8 |
| November | 3.5% | +0.8 |
| December | 3.6% | +1.6 |
| Average | 2.9% |
Data source
Data from OECD. Last updated: 11/01/2026.