Pd lattice parameter and 57Fe isomer shift (IS) measurements have been correlated in PdHx-Fe matrices (0.3 at.% Fe) over a wide range of hydrogen concentration in the alpha ' (lattice liquid), and in the beta and alpha " phases detected previously by Mossbauer measurements. The authors find that the IS is proportional to the logarithm of the unit cell volume, IS varies as 3 ln a0, just as in IS measurements under pressure. The experimental value of the slope, +3.92 mm s-1, is however much larger than that found by pressure measurements in similar matrices. This shows that the effect in PdHx is of electronic origin, and gives support to the band calculations which have predicted partial localisation of hydrogen electrons in a Pd-H bond.