Purchasing Power in Iceland is among the poorest in Europe, according to Numbeo's website. Numbeo is promoted as 'the world’s largest database of user contributed data about cities and countries worldwide. Numbeo provides current and timely information on world living conditions including cost of living, housing indicators, health care, traffic, crime and pollution.'
Purchasing Power in the 18 European Union countries is higher than in Iceland. Purchasing Power in Iceland is similar to Slovenia and Polland and only half as much as in the top countries, Luxemburg, Germany and Sweden. Purchasing Power is the lowest in Romania and Bulgaria or 20% worse than in Iceland.
The poor purchasing power goes hand in hand with high cost of living in Iceland. When we look at the consumer price index for over 100 countries, Norway has the highest cost of living, but Iceland is in 5th place.
Food also seems to be expensive compared to other countries. According to Numbeo, price of food in Iceland is the 4th highest in the world, after Switzerland, Norway and Venezuela.