The Central Bank of Iceland has today decided to keep its benchmark interest unchanged this month and has predicted ongoing economic growth, despite international economic turmoil. Read the full story

The rate of inflation in Iceland dropped by a further 0.9 percent in January according to Statistics Iceland. The 12-month rate has therefore fallen from 2.5 to 1.8 percent. Read the full story

The Central Bank of Iceland’s inflation target has finally been reached for the first time in around seven years. The annual rate of inflation is now equal to the target 2.5 percent. Read the full story

The cost of food has stayed roughly the same in Iceland for the last ten months, according to a survey by Stod 2 television. Some products in the “general food basket” have become cheaper; but cod liver oil and cucumbers have increased the most. Read the full story

The Monetary Policy Committee (MPC) has voted to lower Central Bank interest rates by 0.5 percentage points. The deposit rate (current account rate) will be 7.0%, and the maximum bid rate for 28-day certificates of deposit (CDs) will be 8.25%. The seven-day collateral lending rate will be 8.5% and the overnight lending rate 10.0%. Read the full story

Iceland’s Prime Minister Johanna Sigurdardottir, believes that food prices have increased too quickly in the last year or two. She told reporters it is essential to reduce inflation and interest rates and to remove currency controls as quickly as possible. Food price hikes are a result of these three factors, she said. Read the full story

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. Read the full story

The annual rate of inflation in Iceland has dropped to 8.6 percent in November, compared to 9.7 percent in October. This is the lowest it has been since autumn 2007; but still a long way from the Central Bank of Iceland’s targeted 2.5 percent. Read the full story

The CPI based on prices in July 2009 is 345.1 points (May 1988=100), 0.17% higher than in the previous month. The CPI less housing cost is 323.9 points, 0.56% higher than in June. The increase is lower than prediced by the IMF and Islandsbanki, but slightly higher than Landsbanki predicted. Read the full story

Iceland’s rate of inflation increased 1.38 percent in June, meaning a rate of 12.2 percent inflation in the last 12 months (16.7 percent when housing costs are excluded).

This rate of inflation is higher than the banks predicted, with NBI (Landsbanki) predicting 1.2 percent and Islandsbanki just 0.9 percent. Read the full story