According to newly published figures from Statistics Iceland (SI), the CPI rose 0.6% month-on-month in March, lowering headline inflation from 10.2% to 9.8%. Twelve-month inflation according to the CPI excluding housing fell, too, from 8.9% to 8.6%.
The March measurement is just below analysts’ forecasts, which lay in the 0.7-0.8% range, including our own forecast of a 0.7% MoM rise in the CPI. The main difference between our forecast and SI’s measurements lay in furniture and housewares prices, which fell, while we had projected an increase. Food prices increase was also less than we expected.