Inflation rates in Iceland continue to rise, with the latest figures from Statistics Iceland indicating that inflation now rests at 10%.
The Consumer Price Index, reported every month by Statistics Iceland, shows that February 2023 reached a level of 577.3 (where May 1988 = 100), a 1.39% increase from January.
When housing prices are not accounted for, the CPI saw a month-on-month increase of 1.81%, indicating a slow in the housing market, and that private consumption has been the main driver in the increase.
Prices of food and non-alcoholic beverages saw an increase of 1.9)%, while prices of clothing increased by 6.8%. Furniture and other household goods were most affected, at 8.7%.
The Consumer Price Index is compiled monthly. In addition to serving as an important indicator of consumer spending and inflation, it is also used to determine rates for inflation-indexed mortgages.
The 10% marker is also notable, as this is the first time inflation has exceeded 10% since 2009.
The high rate of inflation has also impacted the ongoing wage negotiations in Iceland, which have been sharpened given the increasing cost of living.