According to this news item. The prices on this mysterious Nordic country named as Iceland is 84% higher than in European Union. For many years, Norway been the most expensive country. But now it seems like Iceland is on top of that list.
Prices on Iceland have increased dramatically between 2010 and 2017
It seems like Norway isnt the only Nordic country where prices have increased a lot. Between 2010 and 2017 the prices at the saga island have increased a lot. In 2010 the prices on Iceland were only 32% higher than in the rest of EU. While now its at a 84% which is for sure a huge increase.
Íslandsbanki acknowledge that Iceland got lack of competition on the islands. This is the major reason to these price increases, as countries with a more competitive market typically experience stable or decreasing prices. Norway isn’t in European Union, but the internal market here is competitive even though the reality is that Norway shares some of the same issues as Iceland.
Tourism and the economy is linked to the increased prices on Iceland
The lack of competition is not the only reason for the Icelandic prices to have increased so much. Also the tourism on the saga island is a major reason for the prices to increase. Many tourists loves their trips to Iceland and so they report on various places such as YouTube that their visit to Iceland was worth the money they spent. With these words the króna strengthens on Iceland. Which also gives rise in prices all over this unique country.
Same happens to tourism in western parts of Norway where tourists visit because of the fjords. The prices in the touristic areas of Norway is very high. So if you want those trips to be affordable. Do make some bread slices at the hotel before travelling around in Norway too.
This news item says everything about how it is for countries that isn’t in European Union. The prices is higher and competition is not as good. Just look at McDonald’s, Pizza Hut or even Lidl that have left the Nordic region.