Inflation in Iceland Breaks 18-Year Record Skip to content

Inflation in Iceland Breaks 18-Year Record

The 12-month inflation in Iceland has now reached 13.6 percent, according to new data from Statistics Iceland, and has not been higher for 18 years, since August 1990. As a consequence, the capital of mortgages grows and debt burden increases.

According to Morgunbladid, the recent depreciation of the ISK has an impact on inflation, as does the six-percent increase in price of imported goods, which account for almost two percent of the 13.6 percent inflation.

Inflation has a great impact on the debt of home owners. A loan of ISK 20 million (USD 243,000, EUR 154,000) issued by the Housing Financing Fund (HFF) increases by ISK 2.7 million (USD 33,000, EUR 21,000) after one year of a 13.6 percent inflation.

This month, Statistics Iceland recorded an unusual 0.7-percent increase in the market value of real estate in countryside Iceland, and not in the capital region, where the market value of real estate remained almost unchanged between months.

Sign up for our weekly newsletter

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

* indicates required

Subscribe to Iceland Review

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

Share article