From Iceland — Highest Inflation In 16 Months

Highest Inflation In 16 Months

Published September 29, 2020

Photo by
Art Bicnick

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.

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