Iceland experiences spike in inflation Skip to content

Iceland experiences spike in inflation

Icelandic National Broadcasting Service, RÚV, reports that real estate prices increased 30% over construction prices this year. At the same time inflation in Iceland measured at one of the lowest levels in Europe using a pan-European metric.

In November, however, inflation clocked in at 4.2% using a domestic metric, the highest rate in Europe except for Latvia.

The domestic metric takes into account real estate price hikes but he pan-European one does not.

Analysts at KB Bank forecast a 20-40% increase in new building in the next 12 months in response to increased real estate prices.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

– From 3€ per month

Share article

Facebook
Twitter

Recommended Posts