Iceland has become the most expensive country in the world

The Icelandic trade union Viska, using data from Eurostat and the Central Bank of Iceland, calculated that the price level in this small Nordic country now exceeds that of Switzerland by three percentage points.

According to Eurostat, the last time prices in Iceland exceeded those in Switzerland was in 2018. 

Eurostat data for 2024, the most recent available, shows that the price level in Switzerland, adjusted for purchasing power, exceeded Iceland’s by more than 7 percentage points.

This situation illustrates the challenges facing a small Atlantic economy that has historically been prone to booms and busts. The post-pandemic surge in tourism, its main engine of growth, has driven economic recovery and rising prices, which the central bank is trying to curb.

"Tourism contributes significantly to inflation in the services sector. Demand pressure from tourism has driven wage growth. Another important component is housing, which tourism directly impacts. Tourists, for example, compete with local residents for housing through Airbnb,” said Vilhjálmur Hilmarsson, an economist with the union.

A recent survey conducted by the National Tourism Board showed that higher costs are beginning to deter visitors.

Icelandhas reported a surge in disinformation ahead of the EU referendum.

Earlier, Latvia announced its intention to join an agreement to establish a special tribunal for Russia for the crime of aggression against Ukraine. Riga reported that it supports the initiative to form an international mechanism to hold Russia accountable for its aggression against Ukraine.

Prior to this, Ukrainian Foreign Minister Andriy Sibiga reported significant progress on the issue of establishing a Special Tribunal to investigate Russia’s crime of aggression against Ukraine.