Inflation Took the Teeth Out of Household Income Growth

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The disposable income of Icelandic households, that is, the income remaining after taxes have been deducted and benefits and other transfers have been taken into account, increased by 6.8 percent in 2025, according to preliminary figures from Statistics Iceland. Taking into account price developments, the increase in purchasing power of disposable income per capita, which measures how much can be purchased with income, amounted to only 1.2 perce…