Not sure how credible it is, but here's a blog from an Icelander.

Preview of what's to come?

http://newsfrettir.com/alive/

Some excerpts:

Minimum wages in Iceland are now just over 1.000 dollars
A gallon of gas is close to 6 dollars.

...

Food prices have raised by such amounts that it is hard to imagine what to eat through the week, and it was difficult before. This is really bad .. very bad. I am the type of a person that would do anything to help others, and so it hurts me to not being able to. I have been asked for food and money, I have nothing to spare. I have given away what I had, but only to leave me in even worse situation. But this is nowhere close to being over yet. As they said on the news this tax raise was only to cover one fortieth of what has to be done to cover up the deficit. If things get forty times worse than they are ............
I know things can get worse for a long time, and can always be worse than they are but this is just absurd. This is literally surreal.

I can not afford to go to the store, I can not afford to eat 2 times a day, I hardly ever turn on a light, I do not do anything that could eventually cost me money and frankly, I wish I could figure out a way to not get my clothes dirty. Thankfully the hot water here is geothermal, not heated, so there is no electric bill for taking a shower. I wonder what more measures I could take to reduce the cost of living, except quit eating.
Other posts speak of taxes going down initially, but now back to previous levels and higher. Also talks about how the government seems to own everything now. etc etc.