The week ahead
- On Tuesday, Statistics Iceland publishes the January measurement of the consumer price index (CPI) and we expect inflation to decrease from 7.7% to 7.2%. Össur publishes annual results and Eurostat preliminary national accounts for the Eurozone.
- On Wednesday, the Central Bank of Iceland (CBI) publishes results of a market expectation survey and the US Federal Reserve announces its interest rate decision.
- On Thursday, Icelandair and Landsbankinn publish annual financial statements, Eurostat releases inflation figures for the Eurozone and the Bank of England announces its interest rate decision.
- On Friday, the US publishes unemployment figures.
Image of the week
Last year, wages increased by 10% on average between years. Despite much higher wages, their purchasing power, i.e. the goods and services that can be purchased for wages, only grew by 1%. The year before, in 2022, wages increased by just over 8% between years while purchasing power remained unchanged. If we go back to 1990, we see that while wages have always increased between years in Iceland, purchasing power has contracted between years seven times.
Highlights of the previous week
- Around two out of every three apartments sold in the capital city area in November were sold below asking price, according to figures from the Housing and Construction Authority (HMS).
- GDP in the US is up by 3.3% on an annualised basis between quarters in the fourth quarter of 2023.
- The European Central Bank kept the policy rate unchanged, in line with expectations.
- On the stock market, Icelandair announced an agreement providing for the rent of two Airbus jets, Amaroq announced the results of exploratory drilling, the board of VÍS decided to start a buy-back programme for own shares and Kvika Bank published an earnings warning.
- On the bond market, Government Debt Management auctioned Treasury bills and Treasury notes, the City of Reykjavík issued bonds and Kvika Bank decided to exercise a call option for all bons in the KVB 18 02 series.