We Won't Reach Inflation Target Until 2027 – Wage Increases a Key Factor

heimildin.is

Left

Factuality

Ownership

Inflation in Iceland will not reach the Central Bank's target until 2027, despite high interest rates and declining imported inflation. This was stated in a speech by Þórarinn G. Pétursson, Deputy Governor for Monetary Policy, at a meeting of the Icelandic Employers' Association this week. Although imported inflation has subsided due to the strengthening of the króna, domestic inflation continues to be pushed up, not least due to large wage incr…