Higher taxes pushing Icelandic mortgages up

umferðThe 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.

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