Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Iceland January Inflation Unchanged as Sales Counter Krona Slide

Jan. 29 (Bloomberg) -- Iceland’s annual inflation rate was unchanged this month as seasonal sales prevented a continued slide in the krona from raising prices, reducing pressure on the central bank to boost interest rates.

Inflation held at an annual 4.2 percent in January, Reykjavik-based Statistics Iceland said today on its website. Consumer prices rose 0.3 percent in the month, the agency said.

The central bank last month kept its benchmark rate at 6 percent as policy makers try to support the krona while they scale back currency restrictions. The bank, which targets 2.5 percent inflation, forecasts that inflation will average 3.6 this year and slow to 2.7 percent in 2014.

Iceland imposed currency restrictions in 2008 following the failure of Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf after the krona sank 80 percent against the euro offshore. Arion Bank hf, the state-created successor to Kaupthing, has estimated the controls are stopping as much as $8 billion in offshore krona assets from being sold.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.