Inflation rates by country and year

0%21%42%63%84%
0%21%42%63%84%
19602.0%
19923.9%
20254.1%
Source: World Bank

Data: World Bank, annual %. For information only — not financial advice.

Year2025Inflation Rate4.1%

Behind the curve

Turning points in Iceland

  1. 1983↑ Upward pressure

    Krona devaluations fed an indexed wage-price spiral — Wikipedia (opens in a new tab)

    After major 1982 devaluations, a further 9 percent króna devaluation in January 1983 accelerated prices. Wage indexation and the fish-price settlement reinforced the inflation spiral before the May stabilization program suspended wage indexation.

    OECD Economic Surveys: Iceland 1984
  2. 2008↑ Upward pressure

    The Icelandic financial crisis — Wikipedia (opens in a new tab)

    A loss of confidence in banks reliant on foreign wholesale funding collapsed Iceland's three largest banks in October 2008. The króna fell by more than 70 percent offshore, amplifying inflation in an import-dependent economy.

    IMF Country Report 08/362: Iceland—Request for a Stand-By Arrangement
  3. 2022↑ Upward pressure

    The post-pandemic inflation surge — Wikipedia (opens in a new tab)

    Tightening domestic slack and higher import prices lifted inflation in 2022 despite Iceland's renewable energy base. The IMF projected 7.4 percent inflation, with the central bank's tightening cycle moderating the rise.

    IMF Country Report 22/193: Iceland—2022 Article IV Consultation

These are selected historical influences, not a complete account of inflation. An upward-pressure event can coincide with a peak when its inflationary effect has already occurred or when other forces begin pushing inflation lower. The markers show the years in which events occurred, although their effects may extend into later years.

What is the inflation in Iceland?

The annual inflation rate in Iceland was 4.1% in 2025, the most recent year in the World Bank dataset. That means prices rose 4.1% on average compared with the year before. Use the chart above to explore Iceland's full inflation history from 1960 to 2025, and to compare it with any other country.

How inflation in Iceland has changed

Inflation in Iceland peaked at 84.0% in 1983 and reached its lowest point at 1.6% in 1994. Averaged across the 66 years of available data (1960–2025), the rate has been 14.6% per year.

Frequently asked questions about inflation in Iceland

What is the current inflation rate in Iceland?

The latest available annual figure is 4.1% in 2025, from the World Bank. Because the figures are reported annually, they may not reflect the most recent monthly reading published by Iceland's statistical office.

What was the highest inflation rate in Iceland?

The highest annual inflation rate on record is 84.0%, reached in 1983.

What was the lowest inflation rate in Iceland?

The lowest annual inflation rate on record is 1.6%, recorded in 1994.

Where does the inflation data for Iceland come from?

All figures come from the World Bank's World Development Indicators (indicator FP.CPI.TOTL.ZG), which report annual consumer price inflation for more than 200 countries and territories from 1960 onward.