Weekly bul­letin 29 Janu­ary 2024

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%.
Epli
29 January 2024

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

Statistics and market data

Weekly bulletin 29 January 2024 (PDF in Icelandic)

Disclaimer
This review and/or summary is marketing material intended for information purposes and does not constitute financial advice or an independent financial analysis. The legal provisions that apply to financial advice and financial analysis do not apply to this content, including the ban on transactions prior to publication. The review is based on publicly available information from parties that Landsbankinn deems reliable yet the Bank cannot independently guarantee the accuracy of the information. Landsbankinn is not liable for any loss that may result from use of the information contained herein.

Information about the past performance of financial instruments or indices show nominal returns, unless otherwise mentioned. If results are based on foreign currencies, returns may increase or decrease as a result of currency fluctuations. Past returns are not necessarily an indication of future returns. Detailed information about the historic performance of financial instruments and indices is available on Landsbankinn’s website, including on returns for the past 5 years.

Securities transactions involve risk and readers are encouraged to familiarise themselves with the Risk Description for Trading in Financial Instruments and Landsbankinn’s Conflict of Interest Policy on Landsbankinn’s website.

Landsbankinn is licensed to operate as a commercial bank in accordance with Act No. 161/2002, on Financial Undertakings, and is subject to supervision by the Financial Supervisory Authority of the Central Bank of Iceland (www.fme.is).
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