In Iceland, the 12-month inflation rate in April measured 4.6 percent and has been above the Central Bank of Iceland target rate for four months, or all of this year so far, according to RUV Iceland. Inflation has not been higher since February 2013, when it was 4.8 percent.

House prices, which jumped 2.5 percent, are the biggest factor in the current inflationary picture, driving the consumer price index up by 0.4 percent. The second-biggest factor is drinks, which have increased in price by 1.1 percent—largely down to the increasing cost of milk.

Statistics Iceland’s website notes that consumption patterns have changed significantly over the past one year, specifically in response to the pandemic. Spending on overseas travel is down, as well as spending on specific services and events (due to cancellation or closure).