Islandsbanki Research has published a new inflation forecast.
We forecast a 0.4% rise in the CPI in April
We expect the consumer price index (CPI) to rise by 0.4% month-on-month in April, raising headline inflation to 3.3%, from 2.9% in March.
Highlights
· We forecast a 0.4% rise in the CPI in April
· Headline inflation will rise to 3.3%
· Easter spike in airfares pushes upwards
· Imputed rent pushes downwards
· Inflation outlook has improved somewhat
· Inflation 2.9% in 2019 and 2.8% in 2020
We expect the consumer price index (CPI) to rise by 0.4% month-on-month in April,raising headline inflation to 3.3%, from 2.9% in March. The medium-term inflation outlook has improved somewhat since our last forecast, owing to the prospect of more favourable wage developments in 2019 and a slower rise in house prices than we had previously expected. Inflation looks set to average 3.4% in Q2/2019 and taper off thereafter. We expect it to measure 2.9% at the end of 2019 and 2.8% at the end of 2020.
