According to newly published figures from Statistics Iceland (SI), the CPI rose 0.5% month-on-month in January, pushing inflation up to 5.7% from the December figure of 5.1%. This is Iceland’s highest inflation figure since April 2012. Twelve-month inflation excluding housing is now 3.7%.
The January measurement is well above our projections and those of other forecasters. All official forecasts had provided for a 0.2% MoM rise in the CPI. The main differences between our forecast and SI’s measurements lie in imputed rent, which rose significantly more than we had expected, and in motor vehicles and food and beverages, which also rose more than we had projected.