Landsbanki reports that inflation in Iceland is stabilising, even as it continues to grow overseas.
The report says that the devaluing of the Icelandic crown has all but gone at this point, and that it is now beginning to strengthen. Inflation was as high as 21.9% last January, and was considered the highest in the European Economic Area (EEA). However, last November’s data shows inflation to now be at 3.8%.
In the meantime, inflation is steadily increasing in the EEA. Romania has the highest inflation thus far for November, at 7.7%.
Signs of Iceland’s economic recovery have been prevalent throughout 2010. Both inflation and unemployment are decreasing, and only last April Moody’s raised Iceland’s economic assessment from Negative to Stable.
At the same time, although this is 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.
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