Inflation in Iceland is currently higher than it has been in 16 months. Twelve-month inflation now stands at 3.5%, a report from RÚV revealed this morning. It has not been higher than this since May last year, when it was 3.6%.
According to a new survey by Statistics Iceland, the prices of furniture, household appliances and related products has risen by 4%. If household wares were not included inflation would be higher, standing at 3.9%.
From December last year to June this year inflation rose from 1.7% to 2.6%. July saw it rise to 3%: it has now increased in three consecutive measurements.
The news comes in the wake of a macroeconomic forecast from Íslandsbanki, which predicts that while growth is sure to decrease this year, the promise of a coronavirus vaccine could see the economy bounce back by spring 2021.
Note: Due to the effect the Coronavirus is having on tourism in Iceland, it’s become increasingly difficult for the Grapevine to survive. If you enjoy our content and want to help the Grapevine’s journalists do things like eat and pay rent, please consider joining our High Five Club.
You can also check out our shop, loaded with books, apparel and other cool merch, that you can buy and have delivered right to your door.
Buy subscriptions, t-shirts and more from our shop right here!
