According to newly published figures from Statistics Iceland (SI), the CPI rose 1.25% month-on-month in April, pushing headline inflation up to 7.2%, from 6.7% in March. It is Iceland’s highest inflation measurement since May 2010. Twelve-month inflation according to the CPI excluding housing measured 5.3% during the month.
The April measurement exceeds all published forecasts, which provided for a CPI rise ranging from 0.65% to 1.1% month-on-month. The main difference between our forecast and SI’s measurements lies in imputed rent, which rose far more than we had projected, and airfares, which also rose quite a bit more than we had anticipated.