Inflation Lowest in Three Years

Published September 29, 2010

Iceland’s current rate of inflation is lower than it has been in about three years, according to Statistics Iceland.
Inflation has actually dropped in the past month alone, from 4.5% to 3.7%. This went against all expectations that there would be a 1.5% increases in prices across the board. In fact, prices on average remained steady.
Auðbjörg Ólafsdóttir, a specialist at Landsbanki, told RÚV that a strengthening kronur can account for the drop in inflation, with the costs of goods decreasing slightly in most categories. However, the prices of clothing and shoes actually went up in the past month, due to summer’s end sales closing up. That said, the strengthening crown counterbalanced those price increases, and so prices on average remained stable.
Auðbjörg also points out that a planned increase in rates for electricity and heating, as well as rising global prices for grains, will add pressure to the economy. On the other hand, inflation will continue to decrease because the months with the greatest inflation rates from last year are falling off the charts for the year’s average.
Despite this being the lowest rate of inflation that Iceland has seen since August 2007, the Confederation of Icelandic Labor Unions points out that there has still been little change in the price of imported food, despite the strengthening of the kronur.



News
Still More Icelandic Towns Want Asylum Seekers

Still More Icelandic Towns Want Asylum Seekers

by

More Icelandic towns have expressed the desire to welcome more asylum seekers to Iceland, and have appealed to national authorities

News
Extreme Chill Case Going To Court

Extreme Chill Case Going To Court

by

Attendees of the Extreme Chill festival who were subject to egregious police practices are taking the police to court. Helga

News
Iceland More Secular Than Global Average

Iceland More Secular Than Global Average

by

Only about half of Icelanders define themselves as “religious”, well below the global average of a newly released Gallup poll.

News
Today At The Reykjavík Dance Festival: Thursday, August 27

Today At The Reykjavík Dance Festival: Thursday, August 27

by

Much to the delight of dance enthusiasts, the August 2015 Reykjavík Dance Festival (RDF) kicked off yesterday. This past November,

News
BREAKING: Bollywood Director Shooting In Iceland

BREAKING: Bollywood Director Shooting In Iceland

by

Bollywood choreographer-director Farah Khan and others are currently in Iceland to shoot a romantic number. India.com reports that Farah is

News
Fish And Whaling Chiefs Go Fishing With Russian Officials

Fish And Whaling Chiefs Go Fishing With Russian Officials

by

Captains of Icelandic industry – including fishing giant HB Grandi and whaling company Hvalur hf. – recently took Russia’s Assistant

Show Me More!