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
MP To Make Millions Off Fishing Bill

MP To Make Millions Off Fishing Bill

by

The wife of a Progressive MP stands to make millions from a bill her husband is partially responsible for crafting.

News
Artist Dumps Red Dye In Geyser

Artist Dumps Red Dye In Geyser

by

Tourists greeted with the sight of Strokkur erupting in a bright pink colour have apparently seen the latest work by

News
Unemployment Continues Yearly Decline

Unemployment Continues Yearly Decline

by

Unemployment in Iceland for the month of March is now at 4%, down by over 2% from this time last

News
Snoop Dogg! Playing A Gig In Iceland! This July!

Snoop Dogg! Playing A Gig In Iceland! This July!

by

International hip hop superstar and emissary of cool, Calvin Cordozar Broadus Jr., aka. Snoop Dogg, is returning to Iceland to

News
Dagur Kári’s ‘Virgin Mountain’ Wins Top Prizes At Tribeca, Gunnar Jónsson Named Best Actor

Dagur Kári’s ‘Virgin Mountain’ Wins Top Prizes At Tribeca, Gunnar Jónsson Named Best Actor

by

Director Dagur Kári’s latest film, Virgin Mountain dominated New York’s Tribeca Film Festival last night, taking the prize for the festival’s world

News
It’s Birch-Tappin’ Time

It’s Birch-Tappin’ Time

by

That time of year is upon us again: when Icelandic birch trees will be tapped for the delicious and purportedly

Show Me More!