The cumulative inflation rate in Iceland between 1998 and today has been 278.7%, meaning that prices are 3.8 times higher than they were in 1998. In practical terms, the purchasing power of kr100 in 1998 is equivalent to kr378.7 in today's kronur. The average annual inflation rate over this period has been 4.87%.
The chart below shows how the value of kr100 changes over time when adjusted for inflation, based on Consumer Price Index (CPI) data. All values are equivalent in terms of purchasing power, indicating how much money would be needed each year to buy the same goods or services.
All calculations are performed in Icelandic kronur with six-decimal precision, though displayed values are rounded to two decimals for readability. Inflation figures are sourced from official government and international reports released monthly. To convert historical amounts into today's kronur, we use the most recent CPI data available and extrapolate it to estimate the CPI for today.
The following table contains relevant indicators:
| Indicator | Value |
|---|---|
| Cumulative inflation 1998-2025 | 256.6% |
| Cumulative inflation 1998-today | 278.7% |
| Avg. Annual inflation 1998-2025 | 4.82% |
| CPI 1998 | 42.79 |
| CPI 2025 | 152.59 |
| CPI 2026-06 (latest official data) | 161.31 |
| CPI today | 162.05 |
There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the Consumer Price Index (CPI) formula or the compound interest formula.
When we have both the start and end years, we can use the following formula:
To obtain the values equivalent in buying power between 1998 and 2025, use the corresponding CPI values:
To obtain the equivalent value today (present value), plug in the CPI for today, which is estimated as 162.05:
Given that money changes with time as a result of an inflation rate that acts as compound interest, we can use the following formula: FV = PV × (1 + i)n, where:
In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are kr100 worth today. There are 27 years between 1998 and 2025 and the average inflation rate was 4.8217%. Therefore, we can resolve the formula like this:
| Initial Value | Equivalent value | |
|---|---|---|
| kr1 krona in 1998 | → | kr3.57 kronur in 2025 |
| kr5 kronur in 1998 | → | kr17.83 kronur in 2025 |
| kr10 kronur in 1998 | → | kr35.66 kronur in 2025 |
| kr50 kronur in 1998 | → | kr178.3 kronur in 2025 |
| kr100 kronur in 1998 | → | kr356.6 kronur in 2025 |
| kr500 kronur in 1998 | → | kr1,782.98 kronur in 2025 |
| kr1,000 kronur in 1998 | → | kr3,565.97 kronur in 2025 |
| kr5,000 kronur in 1998 | → | kr17,829.85 kronur in 2025 |
| kr10,000 kronur in 1998 | → | kr35,659.7 kronur in 2025 |
| kr50,000 kronur in 1998 | → | kr178,298.49 kronur in 2025 |
| kr100,000 kronur in 1998 | → | kr356,596.98 kronur in 2025 |
| kr500,000 kronur in 1998 | → | kr1.78M kronur in 2025 |
| kr1,000,000 kronur in 1998 | → | kr3.57M kronur in 2025 |
| Cumulative inflation From 1998 | 278.7% |
| Avg. annual inflation From 1998 | 4.87% |
| CPI 1998 | 42.79 |
| CPI today | 162.05 |
| Period | Value |
|---|---|
| 1998 | kr100 |
| 1999 | kr103.23 |
| 2000 | kr108.53 |
| 2001 | kr115.49 |
| 2002 | kr121.49 |
| 2003 | kr123.99 |
| 2004 | kr127.9 |
| 2005 | kr133 |
| 2006 | kr141.89 |
| 2007 | kr149.06 |
| 2008 | kr167.98 |
| 2009 | kr188.15 |
| 2010 | kr198.3 |
| 2011 | kr206.24 |
| 2012 | kr216.93 |
| 2013 | kr225.33 |
| 2014 | kr229.94 |
| 2015 | kr233.69 |
| 2016 | kr237.66 |
| 2017 | kr241.84 |
| 2018 | kr248.33 |
| 2019 | kr255.82 |
| 2020 | kr263.1 |
| 2021 | kr274.79 |
| 2022 | kr297.63 |
| 2023 | kr323.63 |
| 2024 | kr342.58 |
| 2025 | kr356.6 |
| 2026-06 | kr376.98 |
| Today | kr378.7 |
All available years
Today's value of Icelandic kronur by year:
1955 | 1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | 1965 | 1966 | 1967 | 1968 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
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