VI
EN
According to data from the European Statistical Agency (Eurostat), in 2018, the average consumer price in Iceland was 56% higher than in the rest of Europe, making Iceland the most expensive country in Europe, ahead of Switzerland (52%), Norway (48%), and Denmark (38%).
If tourists look at a menu at an average restaurant in Iceland, they might see that a pizza with just cheese costs around 2,400 krona (equivalent to nearly 17 euros or 19 USD), a glass of wine will cost at least 10 euros, and a glass of beer (0.58 liters) will cost around 7 euros.
According to the consumer price comparison website Numbeo, a dinner for two at an average restaurant ends up costing around 85 euros, a bottle of wine in a shop costs around 17 euros, and a dozen eggs can cost up to 5 euros.
To explain the high prices, there are three main reasons: Iceland's small population (only around 355,000 people), its heavy reliance on imported goods, and high taxes on alcoholic beverages.
Regulations are also one of the reasons why imported products such as raw eggs or unpasteurized milk face strict customs barriers. In addition, significant fluctuations in the Icelandic krona exchange rate during 2016-2017 also contributed to the overall price increase.
Konrad Gudjonsson, an economist at the Icelandic Chamber of Commerce, stated that there is a strong link between the high cost of living in a country and the standard of living for its citizens. Last year, the average monthly salary for a full-time worker in Iceland was 632,000 krona before tax (approximately €4,450 or $5,000). Therefore, while the high cost of living in Iceland may shock tourists, its citizens enjoy a reasonable salary. Iceland is among the countries with the highest average salaries in Europe.
