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Finances in Iceland
Photo: Photo: Golli. Stacks of Icelandic krona. .

Inflation in Iceland Declining

In news that will likely come as a relief to locals and visitors alike, RÚV reports that inflation has been declining in Iceland.

Still higher than the EEA

That said, inflation in Iceland is still comparatively high, at least within the context of the rest of the European Economic Area (EEA). Whereas inflation in the EEA last month was at 2.6%, in Iceland it was 5.1%

Iceland is not, however, the country with the highest inflation rate in Europe; that distinction goes to Turkey, with a January 2024 inflation rate of 64.9%.

Inflation decreasing

While 5.1% may not be ideal, inflation in Iceland has been trending downward. In February of last year, it was at 8.8%, and in October 2022, 11.5%.

All this being the case, the consumer price index is also trending downwards, boding especially well for Icelandic residents in the wake of recent collective bargaining negotiations.

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