According to newly published figures from Statistics Iceland (SI), the CPI rose 0.3% month-on-month in August, bumping headline inflation upwards from 7.6% to 7.7%. Twelve-month inflation excluding housing rose as well, from 7.1% to 7.6%.
The August CPI measurement exceeds published forecasts. We had forecast that the CPI would fall 0.1% between months. The main difference between our forecast and SI’s measurements lies in end-of-sale effects on furniture and housewares prices, which rose during the month, whereas we had assumed that sales would continue into August. Furthermore, imputed rent fell less than we had anticipated.