Inflation is Permanent in Increasing Mortgages Skip to content

Inflation is Permanent in Increasing Mortgages

Icelandic homeowners owe over ISK 1,500 billion (USD 19.7 billion). Mortgages are around 80 percent of the total debt. This amount has grown by ISK 17 billion alone because of inflation in May.

On average, ISK 300,000 (USD 1,710) have been added to each household in Iceland due to inflation, with May’s inflation at 1.37 percent. Fréttabladid reports

Gylfi Arnibjörnsson, CEO of ASÍ The Icelandic Federation of Labor Unions told Fréttabladid that the increasing debt of Icelandic homeowners has been slowly developing since 2003 although the rate of the inflation has never accelerated so much. According to figures from ASÍ, around ISK 68 billion will be added to household debt this year. That’s around 14 percent of average wages.

Read more about inflation in Iceland here

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