Iceland’s annual rate hits 7.6%

According to new numbers released by Statistics Iceland, Iceland’s annual inflation rate is now at 7.6%.

To fight inflation, the Icelandic government has introduced new measures, which includes curtailing salaries for senior officials, postponing several construction projects, and increasing security pensions.

The Icelandic band, Íslandsbanki, predicted that inflation rates would drop to 8% by the end of the year. This reduction can be put down to summer clearance sales, which have driven down the costs of things like consumer electronics and clothing.

It was announced that furniture and household appliances has decreased by 2.4% and clothes have dropped to 2.4%.

Over the last three years, sales have been pretty strong due to COVID causing a high demand for these products.