Inflation Rate Now 10%, Up 1.39% From January Skip to content

Inflation Rate Now 10%, Up 1.39% From January

By Erik Pomrenke

inflation rate in iceland
Photo: Golli.

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.

Read more: Inflation Rate Continues to Climb (January 2023)

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%.

inflation rate iceland february 2023
Statistics Iceland

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.

 

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