Inflation Below 6% for First Time in Two and a Half Years Skip to content

Inflation Below 6% for First Time in Two and a Half Years

By Erik Pomrenke

inflation rate in iceland
Photo: Golli.

Over the past twelve months, the CPI (Consumer Price Index) has risen by 5.8%, excluding housing costs. This is the first time in some two and a half years that inflation has rested below 6%.

Inflation was measured at 6.2% last month. The highest inflation rate in recent years was recorded in February of 2023, which saw rates of 10.2%.

Key factors in the recent change include:

  • The consumer price index excluding housing rose by 0.41% from May 2024 to 510.6 points. Owner-occupied housing costs increased by 0.8%.
  • International airfare rose by 8.0%, and hotel and restaurant prices increased by 2.1%, largely due to a 17% rise in accommodation costs.

In their latest report, Statistics Iceland also announced a new method for calculating rent using the rental equivalence method.

 

 

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