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Higher Inflation Forecast for Iceland

The analysis department of Arion Bank is predicting considerable inflation, higher than six percent, in the coming months, as stated in its newsletter Markaðspunktar.

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It is forecast that the factor of January sales will reduce, while the price of services and products will increase, including fuel and dairy products, visir.is reports.

Increases in the price of public services was more significant than previous forecasts had assumed and were the main factor in the higher than predicted inflation for this month of 6.5 percent.

The analysis department concludes that the impact of a weak currency will continue to influence pricing, as will further increases on the housing market.

Annual inflation won’t drop below six percent until May, analyzers predict.

ESA

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