Reykjavík is now the 8th most expensive city in the world out of 506 cities indexed, according to the latest figures from Numbeo. The cost of living in Iceland’s capital is actually 28.36% higher here than in New York.
In fact, as Vísir points out, Reykjavík ascended from 61st place in 2011 to 28th place just last year.
Of the daily expenses that people living here while have to pay for, consumer goods comprised the greatest share of expenses, at 32%. However, rent was not far behind, comprising 29.3% of the total expenses Icelanders have to pay out.
The rapidly increasing cost of living in such a short period of time, in addition to how great a share of expenses rent comprises, could indicate an overheating economy. However, Landsbanki cautions that this indexing is not an exact science and subject to interpretation.