Inflation in Iceland Drops to 2.5 Percent Skip to content

Inflation in Iceland Drops to 2.5 Percent

The annual inflation in Iceland now measures 2.5 percent, down from 2.6 percent last month, and has reached the Central Bank’s inflation goal. The inflation hasn’t been as low in years.

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From the shopping mall Smáralind. Copyright: Icelandic Photo Agency.

The consumer price index (CPI) based on prices in December is 366.7 points (May 1988=”100),” 0.33 percent higher than in the previous month.

The CPI less housing cost is 349.5 points, 0.43 percent higher than in November, as it says on the website of Statistics Iceland.

Prices of petrol and diesel oil rose by 4.0 percent (effect on the index 0.22 percent) and international airfares increased by 15.5 percent (0.12 percent).

The CPI in December 2010 is 2.5 percent higher than in December 2009 while the CPI less housing cost is 3.5 percent higher than one year ago.

Over the past three months, the CPI has increased by 1.1 percent, equivalent to an annual inflation rate of 4.6 percent (5.4 percent inflation for the CPI less housing cost).

The average of the CPI in the year 2010 was 363.2 points, 5.4 percent higher than the 2009 yearly average. This change is comparable to a 12.0 percent rise in 2009 and 12.4 percent in the year 2008.

Click here to read the inflation news from November.

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