Iceland vs France 🇮🇸 🇫🇷 Cost of Living

Welcome To. Bjorn In Iceland 🇮🇸

Cost of Living in Iceland is 46.2% higher than in France (excluding rent)
Cost of Living Including Rent in Iceland is 63.7% higher than in France
Rent Prices in Iceland are 130.4% higher than in France
Restaurant Prices in Iceland are 59.9% higher than in France
Groceries Prices in Iceland are 44.5% higher than in France
Local Purchasing Power in Iceland is 2.0% lower than in France
Meal at an Inexpensive Restaurant 15.0€
2,157kr
Numbeo

Meal at an Inexpensive Restaurant in
in France 15.0€ , 2,157kr
in Iceland 23.3€ , 3,350k

Meal for Two at a Mid-Range Restaurant (Three Courses, Without Drinks
in France 60.0€ , 8,628kr
in Iceland. 104€, 15,000kr

Combo Meal at McDonald’s (or Equivalent Fast-Food Meal)
In France 12.0€, 1,725kr
in Iceland. 19.3€, 2,775k

Domestic Draft Beer (0.5 Liter)
in France 6.5€, 934kr
in Iceland 6.5€, 934kr

Imported Beer (0.33 Liter Bottle)
in France. 5.0€ 719kr
in Iceland. 9.0€, 1,300kr

Cappuccino (Regular Size)
in France. 3.4€, 483kr
in Iceland. 5.2, € 748kr,

Soft Drink (Coca-Cola or Pepsi, 0.33 Liter Bottle
in France. 2.9€, 418kr
in Iceland. 2.8€, 402kr

Milk (Regular, 1 Liter)
in France. 1.2€, 169kr
in Iceland. 1.7€, 241k

Fresh White Bread (500 g Loaf)
in France. 1.8€, 258kr
in Iceland. 3.5€, 497kr

White Rice (1 kg)
in France. 2.3€, 334kr
in Iceland. 3.0€, 429kr

Eggs (12, Large Size
in France. 3.8€, 542kr 5.8€
in Iceland. 5.8€, 832kr

Local Cheese (1 kg)
in France. 17.5€, 2,513kr
in Iceland. 17.0€, 2,440kr

Chicken Fillets (1 kg)
in France. 12.3€
1,766kr
in Iceland. 21.6€
3,110kr
Numbeo

Iceland is significantly more expensive than France, with Reykjavik often showing costs 40%–60% higher for rent and daily expenses compared to French cities. While both feature high living standards, Iceland’s isolated island economy drives up prices for imported goods, food, and housing significantly.

Rent: A one-bedroom apartment in a city center is much higher in Reykjavik ($approx$$1,770/month) than in French cities like Toulouse ($approx$$720/month).
Groceries & Dining: Food and restaurant prices are notably higher in Iceland due to reliance on imports.
Utilities: While many expenses are higher, electricity in Iceland is cheaper than in France due to abundant renewable energy.
Salaries: To offset costs, average salaries in Iceland are high, around 758,000 ISK ($5,493) per month, though income tax and cost of living often balance this out.
Paritydeals

As of March 2026, Iceland’s annual inflation rate is 5.4%, rising from 5.2% in February. Inflation has increased from late 2025 levels, driven heavily by housing, transport, and food costs, representing the highest level since late 2024. The Central Bank of Iceland maintains a 2.5% target, and current inflation remains well above this, leading to high interest rates (7.25% as of early 2026

Key Inflation Drivers (March 2026):
Housing & Utilities: Continued upward pressure (7.2% in Feb).
Transport & Fuel: Rising costs, with petrol and diesel seeing significant jumps (e.g., +5.8% and +6.9% in March).
Food: Increased by 5.8% annually in January 2026.
Tourism/Services: Hotels and restaurants saw a 6% increase, and recreation costs rose.
Trading Economics

Key Trends & Context:
Persistently High: After dipping below 6% late in 2025, inflation has re-accelerated, challenging previous easing trends.
Policy Response: The Central Bank of Iceland has maintained high interest rates to cool the economy, with the policy rate at 7.25% in early 2026.
Monthly Changes: Prices rose 0.9% in February 2026 compared to the previous month.
Trading Economics

France’s annual inflation rate accelerated to 2.0% in March 2026, according to official data from INSEE. This represents a rise from February 2026 levels (which were around 1%-1.7% in preliminary reports), with the latest data confirming an upward trend closer to the European Central Bank’s target.

Key Inflation Details (March 2026/February 2026):
Annual Inflation (March 2026): 2.0%.
Previous Reading (Feb 2026): 1.0% (provisional) to 1.7%.
Monthly Change: CPI rose 0.7% in Feb 2026 compared to Jan 2026.
Driver: The rise in early 2026 was largely due to a moderate decline in energy prices compared to previous steep drops.
Projected Trend: Inflation is expected to be around 1.3%-1.64% for the full year 2026.
Trading Economics

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Bjorn In Iceland 🇮🇸
Bjorn Gudmundsson

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