We project that the consumer price index (CPI) will rise by 0.1 % month-on-month in November, lowering headline inflation from 2.8% to 2.7%, the lowest measurement in over a year.
The inflation outlook for the coming term is favourable, owing to a stable ISK supported by expectations of modest pay rises and reduced house price inflation. We project that inflation will fall below the Central Bank’s (CBI) inflation target as soon as next month, measuring 2.4%. Statistics Iceland (SI) is scheduled to publish its November CPI measurement at 9:00 hrs. on 27 November.