Iceland Tops Global Cost of Living Rankings, Surpassing Switzerland

A new calculation by the Viska union, based on Eurostat data, shows Iceland has become the most expensive country in the world, overtaking Switzerland by about 3%. Food prices are 44% higher than in other Nordic nations, with dairy and eggs up 75% and meat up 71%. Overall consumer prices are 56% above the EU average, making Iceland the costliest nation on the continent.

Experts attribute the surge to a post‑pandemic tourism boom, rising wages and fierce competition for housing via platforms like Airbnb. As one economist noted, “Du lịch đóng góp rất lớn vào lạm phát trong lĩnh vực dịch vụ. Áp lực từ du lịch đã đẩy mức lương lên cao. Một yếu tố quan trọng khác là nhà ở, cũng bị ảnh hưởng trực tiếp bởi du lịch.” The high costs are beginning to discourage visitors, while the small population of about 355,000 faces sustained inflation pressures.