Inflation Iceland 2024
Average inflation: 5.9%
Current Inflation
Inflation is very high at 5.9%, far above the ECB target.
Peak and Trough
The highest inflation was in March at 6.8%. The lowest inflation was in December at 4.7%.
- Highest month
- March: 6.8%
- Lowest month
- December: 4.7%
- Difference
- 2.1 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 11.8%. The lowest price increase was in Communication with an average of -5.2%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 11.8%
- Lowest increase
- Communication: -5.2%
Historical Context
Current inflation is around the 5-year average of 6.1%.
- 5-year average
- 6.1%
- 10-year average
- 4.1%
- All-time high (2008)
- 12.6%
- All-time low (2015)
- 1.6%
Trend
Inflation shows a downward trend. Compared to 2023, inflation has fallen by +2.9 percentage point.
- Change vs. previous year
- -2.9 percentage points
- Largest monthly swing
- April: -3.9 percentage points
ECB Target
Inflation is 3.9% 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 €105.90 next year at this inflation rate.
Multi-year trend
Monthly figures 2024
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2023 |
|---|---|---|
| January | 6.7% | -3.2 |
| February | 6.6% | -3.6 |
| March | 6.8% | -3.0 |
| April | 6.0% | -3.9 |
| May | 6.2% | -3.3 |
| June | 5.8% | -3.1 |
| July | 6.3% | -1.3 |
| August | 6.0% | -1.7 |
| September | 5.4% | -2.6 |
| October | 5.1% | -2.8 |
| November | 4.8% | -3.2 |
| December | 4.7% | -3.1 |
| Average | 5.9% |
Data source
Data from OECD. Last updated: 11/01/2026.