The increased duty on fuel and alcohol introduced in Iceland on 1st January will have the effect of pushing up the consumer price index by around one percent and therefore pushing up the cost of inflation-indexed mortgages.
This is the opinion of Henny Hinz, an economist with the Icelandic Confederation of Labour. The increase in fuel prices is particularly problematic for inflation, as it pushes up transport costs and eventual retail prices for nearly all other products. Weak consumer demand is, however, working against these inflationary pressures, RUV reports.
If taxes increase then profit decreases, in order to maintain that same profit then prices must increase. Too much taxation can do a lot of damage.
THE WORLD HAS MUCH PROBLEM THAT THE STUPID EPISODE OF ICESAVE WHO CARES ABOUT ICELAND ASK PEOPLE WHERE IS ICELAND THEY WILL SHAKE THEIR HEADS SEND ALL THE CROOKS IN ICESAVE TO NORTH KOREA TO BE SHOT ON THE SPOT
Iceland has to take in palestinian immigrants in oder to get money from rich arab states to pay its debt in ICESAVE. LONG LIVE PALESTINE AND EVENTUALLY GIVE THE PALESTINIAN A HOMELAND IN ICELAND
Rail trasport to avoid surcharges ! Ah no, it’s not available up there :(
^^