Current inflation Ísland 5.9%
September 2026
Current Inflation
Inflation is very high at 5.9%, far above the ECB target.
Historical Context
Inflation is 0.6 percentage points lower than the 5-year average of 6.5%.
- 5-year average
- 6.5%
- 10-year average
- 4.7%
- All-time high (1989)
- 20.7%
- All-time low (2015)
- 1.6%
Trend
Over the period 2024-2026, inflation has remained relatively stable. Compared to 2025, average inflation in 2026 through September has risen by 1.2 percentage points.
ECB Target
Inflation is 3.9 percentage points 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 ISK 100 this year will cost approximately ISK 106 next year at this inflation rate.
Last 12 months
5-year trend
Statistics
- Average 2026 through September
- 5.3%
- Last year
- 4.1%
- 5-year average
- 6.5%
- All-time high (1989)
- 20.7%