Annual Inflation Rate Dips Below 9% for the First Time in 12 Months Skip to content

Annual Inflation Rate Dips Below 9% for the First Time in 12 Months

By Ragnar Tómas

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Photo: Golli.

The annual inflation rate currently sits at 8.9%, marking the first time that it falls below 9% in 12 months, RÚV reports. The decrease is to be attributed to the elimination of inflation measurements from June of last year – during a month when inflation rose from 7.6% to 8.8%.

Attributed to the elimination of July 2022 figures

The annual inflation rate (as measured by the annual change in the consumer price index) declined over the past month and was registered at 8.9% by Statistics Iceland in June, RÚV reports. The annual inflation rate in May was 9.5% compared to 9.9% in April.

Despite the inflation rate declining, the consumer price index (month-on-month) rose by 0.85% compared to the previous month. Notably, the cost of living in personal residences saw a 1.6% increase, while the price of hotel and restaurant services rose by 1.5%. (See table below from Statistics Iceland.)

As noted by RÚV, the current lower annual inflation rate, despite the rise in the consumer price index, can be attributed in part to the superannuation of inflation measurements from June of last year, when inflation rose from 7.6% to 8.8% – marking the most significant single increase in recent times.

In February, the annual inflation rate reached its peak at 10.2%. It has hovered above 9% since July of last year.

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