Inflation Iceland 2021
Average inflation: 4.4%
Current Inflation
Inflation is high at 4.4%, well above the ECB target.
Peak and Trough
The highest inflation was in December at 5.1%. The lowest inflation was in February at 4.1%.
- Highest month
- December: 5.1%
- Lowest month
- February: 4.1%
- Difference
- 1.0 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 5.9%. The lowest price increase was in Communication with an average of -4.8%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 5.9%
- Lowest increase
- Communication: -4.8%
Historical Context
Current inflation is 1.5% higher than the 5-year average of 2.9%.
- 5-year average
- 2.9%
- 10-year average
- 2.9%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2020, inflation has risen by +1.5 percentage point.
- Change vs. previous year
- +1.5 percentage points
- Largest monthly swing
- January: +2.6 percentage points
ECB Target
Inflation is 2.4% 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 €104.40 next year at this inflation rate.
Multi-year trend
Monthly figures 2021
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2020 |
|---|---|---|
| January | 4.3% | +2.6 |
| February | 4.1% | +1.7 |
| March | 4.3% | +2.2 |
| April | 4.5% | +2.2 |
| May | 4.4% | +1.8 |
| June | 4.2% | +1.5 |
| July | 4.3% | +1.3 |
| August | 4.3% | +1.1 |
| September | 4.4% | +0.9 |
| October | 4.5% | +0.9 |
| November | 4.8% | +1.3 |
| December | 5.1% | +1.5 |
| Average | 4.4% |
Data source
Data from OECD. Last updated: 11/01/2026.