Iceland Is Europe's Most Expensive Country

Yes, we knew it … Iceland is expensive. This is evident in a new report from Eurostat, comparing price levels of consumer goods and services in 37 European countries. The report shows price level indices (PLIs) for total household final consumption expenditure (HFCE) on goods and services in 2018. Iceland tends consistently to have the highest prices, followed by northern European countries. South-eastern European countries show the lowest prices.

The price level in Iceland is 56 percent above the average of the 37 European countries. Iceland is followed by Switzerland (52 percent above the average), Norway (48 percent above the average), Denmark (38 percent above the average), and Ireland (27 percent above the average).

Regarding transport services, Iceland shows the highest PLIs among all countries.

Among all countries in the report, Norway has the highest price level for food and non-alcoholic beverages and for alcoholic beverages and tobacco, while Iceland has the highest for clothing and for footwear.

In terms of prices of household appliances and consumer electronics, Iceland, too, tops the list. Iceland furthermore stands out with the most expensive restaurants and hotels.

Breki Karlsson, head of the Icelandic Consumer Assocication, tells Morgunblaðið that Icelanders, too, have among Europe’s highest average wages. He stresses the importance of keeping inflation under control to protect people’s purchasing power.

You can read the detailed Eurostat report here.