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
Time To Get Your Eat On: It’s Bolludagur

Time To Get Your Eat On: It’s Bolludagur

by

If you’re a fan of whipped cream, puffed pastries and jam, we have the holiday for you. Today marks the

News
“Odd” To Ignore Demand Of 60,000 People

“Odd” To Ignore Demand Of 60,000 People

by

A petition to increase health care funding is now the second largest in Icelandic history, but the government has yet

News
Couple Injured After Terrible Fall

Couple Injured After Terrible Fall

by

A chopper from the Icelandic Coast Guard needed to be called to rescue a couple who fell and slid some

News
Many Icelanders Text While Driving

Many Icelanders Text While Driving

by

Almost all Icelanders believe texting while driving is wrong, but about a third of them do it anyway. RÚV reports

News
Kári Apologises For Calling PM “Obese, Two-Year-Old Little Boy”

Kári Apologises For Calling PM “Obese, Two-Year-Old Little Boy”

by

CEO of deCODE Kári Stefánsson has apologised for remarks he made about the Prime Minister in a new Grapevine interview.

News
Charges Dropped Against One Of Accused In Hlíðar Rape Case

Charges Dropped Against One Of Accused In Hlíðar Rape Case

by

Prosecutors have declined to pursue charges against one of the accused in an infamous case of rape in the east

Show Me More!