Iceland has become the world’s most expensive country, overtaking Switzerland in price levels.
This was reported by Bloomberg.
The last time Iceland ranked above Switzerland on this measure was in 2018.
Reasons for the price increase
According to the publication, Iceland’s price level now exceeds Switzerland’s by three percentage points.
Economist Vilhjalmur Hilmarsson links the price rise to the post-pandemic tourism boom. It became one of the main drivers of the country’s economic recovery, but at the same time increased inflationary pressure.
He said the tourism sector affects inflation in services and contributes to wage growth due to strong demand. He also noted that tourism has impacted the housing market.
Meanwhile, Eurostat data for 2024 showed that Switzerland’s price level was still more than seven percentage points higher than Iceland’s when adjusted for purchasing power.
A survey by the Icelandic Tourist Board also showed that high prices are starting to deter tourists from visiting the country.
Hilmarsson added that Iceland’s economy depends on labor-intensive sectors that create persistent inflationary pressure, and the country needs to develop new areas of the economy.
Recall that in March Forbes published a new ranking of the world’s richest people. In 2026 the list included 3,428 billionaires — 400 more than last year. The combined wealth of the ranking’s members reached $20.1 trillion, $4 trillion more than in 2025.
Most billionaires live in the US — 989 people. Next are China together with Hong Kong — 610, and India — 229.
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