According to figures released recently by Statistics Iceland (SI), the consumer price index (CPI) rose 0.16% MoM in July, leaving twelve-month inflation unchanged at 4.3%. Twelve-month inflation excluding housing measured 3.4% during the month.
The July CPI measurement is above our forecast of a 0.1% MoM rise in the index. The main difference between our forecast and SI’s measurements lies in the housing component, which rose more than we had anticipated. Furthermore, food prices rose markedly between months, whereas we had expected only a marginal increase.