Iceland is pretty expensive

Things are expensive in Iceland – food and clothing especially. At the time of this writing, $1 = 60 Iceland Kronur. In general, things are priced, in kronur, about 100 times what you might expect to pay in the states. Since you're dividing prices by 60 instead of 100, you're getting screwed (by a factor of 1.6666666667).

Icelandic wool sweaters. Most of these were anywhere from ISK 16,000 – 24,000 ($267 - $400). Even rather low-end woolen mittens were ISK 2490 ($41.50).

There are two Icelandic companies that make excellent outdoor clothing – 66 degrees North and Cintamani - jackets here are also around ISK 16,000 – 24,000 or more.

The new Bjork album was ISK 1799 ($30).

Fish from a market/grocery store is cheaper than you might find in the states. It is pretty tough, however, to take fish overseas. Restaurants in general are pretty expensive. I had a salmon dish with a beer and it was ISK 3000 ($50). But, restaurants in Iceland are usually for special occasions and seem pretty high-end in nature.

For most of my stay, I got small sandwiches from cafes and a little “salatbox” from the local 7-11 type store, called, “10-11.” They have this plastic box, around the size of a medium plastic tupperware container, that you can fill with anything from their salad bar for ISK 412 ($6.87).

Shuttle from the airport to Reykjavic was ISK 1200 ($20).

Laundry at the hostel (wash and dry) was ISK 700 ($11.67). I slipped into a volcanic mud pool, so I had to do laundry. If you go to Iceland, stay away from volcanic mud pools so you can stay away from spending $12 on laundry.

$9? This is a replica of a figure excavated from an Icelandic settlement site. It's claimed to be Thor with his hammer. Also, it's a key chain ornament.

The tours. For a bus out to Geysir and Gullfoss, it's ISK 5,700 ($95). This may seem kind of high, but I found it to be well worth it. The buses are timely, they'll pick you up from where you stay and they'll try hard to not leave you behind if you're running late. The bus driver/tour guide was amazing. You're provided with vouchers for discounts on food and for free entry into museums on your way. The tours including horse riding or whale watching (that are usually the whole day rather than half a day) are closer to ISK 9,000 ($150). Again, I found these to be worth it.