Wages and prices › Iceland
Iceland: a wage buys 17.4% more than in 2019
Prices are 37.0% higher than in August 2019. Hourly wages rose 59.1% between the second quarter of 2019 and the second quarter of 2026, while prices rose 35.5% over the same quarters. Wages have more than caught up.
How much have prices risen since 2019?
Prices in Iceland are 37.0% higher than in August 2019. What cost 10,000 krónur then costs 13,697 krónur now.
Price rise since August 2019, by what people buy. The red mark is all items, +37.0%.
- Housing and energy+53.6%
- Food and soft drinks+50.6%
- Transport+43.1%
- Restaurants and hotels+41.0%
- Leisure and culture+38.6%
- Personal care and other+37.2%
- Insurance and finance+36.2%
- Alcohol and tobacco+36.0%
- Health+32.7%
- Furniture and household goods+27.8%
- Education+26.6%
- Clothing and shoes+16.3%
- Phone and internet−13.4%
Have wages kept up?
Hourly wages rose 59.1% between the second quarter of 2019 and the second quarter of 2026. Prices rose 35.5% over the same quarters, so a wage buys 17.4% more than in 2019.
The hourly measure rose in 2020 because people worked fewer hours, not because pay rose.
How does Iceland compare with its neighbours?
- European UnionPrices +30.0%, wages +30.0%, a wage buys +0.1%
- IcelandPrices +35.5%, wages +59.1%, a wage buys +17.4%
- United KingdomPrices +32.0%, wages +40.3%, a wage buys +6.2%
- NorwayPrices +28.5%, wages +38.5%, a wage buys +7.8%
- DenmarkPrices +19.5%, wages +21.0%, a wage buys +1.3%
Work out your own inflation
Your prices depend on what you buy. Put in what you spend each month and see your own rate beside the official one: your inflation in Iceland.
Sources and method
Prices: Eurostat, HICP (prc_hicp_minr), August 2026 against August 2019. Wages: Eurostat, labour cost index (lc_lci_r2_q), wages and salaries per hour worked, seasonally adjusted, the second quarter of 2026 against the second quarter of 2019. For the comparison, prices are the average of the same months. The figures are as published on 6 October 2026.