Labour Unions Organise Mass Protest Over Inflation

The Icelandic Confederation of Labour (ASÍ), Federation of Public Workers (BSRB), and the Icelandic Teachers’ Union (KÍ) have organised a mass protest at 16:00 today — Tuesday September 10 — at Austurvöllur in Reykjavík.

“Incessant inflation and high interest rates have seriously affected families in the country due to the increasing prices of essential items and housing costs,” reads their joint press statement. “Despite this being the authorities’ most pressing matter, they’ve denied taking responsibility for the economic situation and handed the Central Bank the reins of government.”

The protest is timed to take place on the first day of the government being convened by new President of Iceland Halla Tómasdóttir.

Since January 2022, inflation levels in Iceland have been over 5%, reaching 10.2% in early 2023, pushing up the already high cost of living.

2025 budget proposal unveiled

Also on the morning of September 10, Financial Minister Sigurður Ingi Jóhannsson introduced the 2025 financial budget, envisioning “brighter times ahead”.

According to Sigurður, neither government cuts nor tax increases are in the picture for the coming season. In conversation with RÚV, opposition MPs expressed their disappointment with the government’s budget. Pirate Party MP Andrés Ingi Jónsson commented that the budget is more reminiscent of a campaign brochure than an actual proposal; Liberal Reform party leader Þorgerður Katrín Gunnarsdóttir’s initial reaction was “a certain sadness,” calling for the resignation of government.