Iceland Mag

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Iceland Mag


Iceland most expensive country in Europe: Consumer prices 66% above the European average

By Staff

  • At least the Northern Lights are free! Also - nobody comes to Iceland for the cheap booze anyway! Photo/Vilhelm

It doesn't take long for freign visitors to discover Iceland is a bit pricey: Everything, from the gas at the pump, the drinks at the bar and the food at the restaurant to groceries is more expensive than what most people are used to paying. In fact, consumer prices in Iceland are on average 66% higher than in Europe.

Read more: Reykjavík world's 14th most expensive city, slightly more affordable than New York

Data from Statistics Iceland and Eurostat reveal that the price level index for household consumption expenditure is 166 (EU29=100). The second most expensive European country is Switzerland, where the price level is 59% above the European average, followed by Norway and Denmark, where prices are 42-43% higher.

The data reveals that food and non-alcoholic beverages are on average 56% more expensive than in Europe. Food is even more expensive in Switzerland (68% above the European average) and Norway (61%). Iceland takes the first spot when it comes to Alcoholic bevarges and tobacco, which is 128% more expensive than the European average, closely followed by Norway where smoking and drinking is 126% more expensive than the average.

Read more: Nobody comes to Iceland for the cheap booze: Beer in Reykjavík 2nd most expensive in Europe

Restaurants and hotels in Iceland are also the most expensive in Europe, 86% above the average. The cheapest European countries are the Balkan nations. Consumer prices in Macedonia are on average only a fourth of what they are in Iceland. However, GDP per capita, adjusted for purchasing power in Iceland is also more than four times that of Macedonia, according to the World Bank.

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