Inflation Iceland 2023
Average inflation: 8.8%
Current Inflation
Inflation is very high at 8.8%, far above the ECB target.
Peak and Trough
The highest inflation was in February at 10.2%. The lowest inflation was in July at 7.6%.
- Highest month
- February: 10.2%
- Lowest month
- July: 7.6%
- Difference
- 2.6 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food and non-alcoholic beverages with an average of 11.9%. The lowest price increase was in Communication with an average of -5.3%.
- Highest increase
- Food and non-alcoholic beverages: 11.9%
- Lowest increase
- Communication: -5.3%
Historical Context
Current inflation is 3.3% higher than the 5-year average of 5.5%.
- 5-year average
- 5.5%
- 10-year average
- 3.7%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Inflation shows an upward trend. Compared to 2022, inflation has risen by +0.5 percentage point.
- Change vs. previous year
- +0.5 percentage points
- Largest monthly swing
- January: +4.2 percentage points
ECB Target
Inflation is 6.8% 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 €108.80 next year at this inflation rate.
Multi-year trend
Monthly figures 2023
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2022 |
|---|---|---|
| January | 9.9% | +4.2 |
| February | 10.2% | +4.0 |
| March | 9.8% | +3.1 |
| April | 9.9% | +2.7 |
| May | 9.5% | +1.9 |
| June | 8.9% | +0.1 |
| July | 7.6% | -2.3 |
| August | 7.7% | -2.0 |
| September | 8.0% | -1.3 |
| October | 7.9% | -1.5 |
| November | 8.0% | -1.3 |
| December | 7.8% | -1.8 |
| Average | 8.8% |
Data source
Data from OECD. Last updated: 13/01/2026.