According to a new report from landsslandsbanki, the price of living today in Iceland is 84% higher than the average price of living in the EU.
Which is seen by the famous research site, affecting the fun of tourists and their early decision to always leave the
country.
According to the report, prices in Iceland rose significantly between 2010 and 2017.
In 2010, Iceland ranked third in terms of prices, and shared this rank with Norway and Denmark.
At that time, prices were only 32% higher than the EU average.
The report says that these increases in prices can not be attributed only to the strength of the krona currency only.
The value of the currency in Iceland rose by 35% between 2010 and 2017, but the same price of living rose by 52%.
More surprisingly, Iceland’s price trend stands in stark contrast to most EU countries, which have grown on average
either too little or remained relatively unchanged.
Landsslandsbanki also believes that the lack of competition in Iceland has contributed to these price increases, as the
countries with the most competitive market, prices are stable or declining.
Tourism and the economy are also linked to rising prices, inextricably linked.
When tourists mention that their visit to Iceland was worth the money they spent, it strengthens the position of the
caruna.
When their satisfaction is low, the position of the karuna weakens.
But in any case there was a 2% increase of dissatisfaction among all tourists between 2016 and last year.
Landsslandsbanki believes that there is “little or no space” for further price increases in Iceland ..
At least for now.
The news follows the announcement by SAM, a major manufacturer and importer in Iceland.
Announced its intention to raise prices in response to a new collective agreement that would increase the wages of its workers.
