4 April 2022 - Landsbankinn
The CPI based on prices in March increased by 0.94% between months, bringing the headline number to 6.7%, up from 6.2% in February. Inflation has not been higher in Iceland since May 2010.
Last week’s highlights
- The CPI based on prices in March increased by 0.94% between months, bringing the headline number to 6.7%, up from 6.2% in February. This was close to our forecast of a 1.0% increase between months. Inflation has not been higher in Iceland since May 2010.
- The government unveiled its fiscal plan for 2023-2027.
- Statistics Iceland published an economic forecast.
- The CBI published its quarterly Economic Indicators.
The week ahead
- On Wednesday, the CBI publishes the real effective exchange rate based on prices in March.
- On Friday, the Directorate of Labour releases unemployment numbers for March.
Markets and Economic Overview
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15 July 2024
The volume of travellers to Iceland decreased by 9% in June this year compared to June 2023. Unemployment was 3.1% in June, slightly higher than the same time last year.
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8 July 2024
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The consumer price index (CPI) rose by 0.48% in June. As a result, inflation measured 5.8%, down from 6.2%. Turnover based on March-April VAT reports contracted by 4.6% in real terms and the wage index rose by 0.2% in May, according to figures released by Statistics Iceland last week.
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The European Central Bank (ECB) lowered its policy rate last week. Stronger labour market figures from the US than generally expected increase the likelihood that the Federal Reserve will postpone initiation of rate cuts.
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13 May 2024
Household deposits have grown considerably alongside rising interest rates. This has resulted in greatly increased interest income for households, in fact in excess of interest expenses.