Iceland has surpassed Switzerland to become the world's most expensive country to live in, according to Sweden's TT news agency.
Experts based their calculations on data from Eurostat and Iceland's central bank, Sedlabanki. Prices in Iceland are about 3% higher than in Switzerland. The significant price increase is largely due to tourism being the backbone of the island's economy.
This has led to inflation in the service sector and rising wages. Additionally, high housing costs, including those in the tourism sector, contribute to the high cost of living. Experts warn that Iceland's heavy reliance on labor-intensive sectors will continue to create inflationary pressure.
According to Eurostat, prices in Iceland were last higher than in Switzerland in 2018.
