Inflation Iceland 2022
Average inflation: 8.3%
Current Inflation
Inflation is very high at 8.3%, far above the ECB target.
Peak and Trough
The highest inflation was in July at 9.9%. The lowest inflation was in January at 5.7%.
- Highest month
- July: 9.9%
- Lowest month
- January: 5.7%
- Difference
- 4.2 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 13.4%. The lowest price increase was in Communication with an average of -6.5%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 13.4%
- Lowest increase
- Communication: -6.5%
Historical Context
Current inflation is 4.0% higher than the 5-year average of 4.3%.
- 5-year average
- 4.3%
- 10-year average
- 3.2%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2021, inflation has risen by +3.9 percentage point.
- Change vs. previous year
- +3.9 percentage points
- Largest monthly swing
- July: +5.6 percentage points
ECB Target
Inflation is 6.3% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for €100 this year will cost approximately €108.30 next year at this inflation rate.
Multi-year trend
Monthly figures 2022
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2021 |
|---|---|---|
| January | 5.7% | +1.4 |
| February | 6.2% | +2.1 |
| March | 6.7% | +2.4 |
| April | 7.2% | +2.7 |
| May | 7.6% | +3.2 |
| June | 8.8% | +4.6 |
| July | 9.9% | +5.6 |
| August | 9.7% | +5.4 |
| September | 9.3% | +4.9 |
| October | 9.4% | +4.9 |
| November | 9.3% | +4.5 |
| December | 9.6% | +4.5 |
| Average | 8.3% |
Data source
Data from OECD. Last updated: 11/01/2026.