The economy of Iceland is a small mixed economy with high levels of free trade and government intervention and subject to high volatility.
Reykjavík is the capital and largest city of Iceland. Reykjavík is is the only metropolitan area in Iceland. As a highly modernized capital of one of the most developed countries in the world, its inhabitants enjoy a first-class welfare system and city infrastructure.
Reykjavik has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.
The latest cost of living rank for each of the 13 Basket Groups is now available.