5 February 2024
The week ahead
- Wednesday is an interest rate decision date at the Central Bank of Iceland (CBI) and sees the publication of Peningamál. We forecast unchanged rates. Arion Bank, Festi and Marel publish results.
- On Thursday, Íslandsbanki, Sjóvá, SKEL fjárfestingarfélag and Play publish results.
- On Friday, the Icelandic Tourist Board releases departures from Leifsstöð International Airport and the Directorate of Labour publishes registered unemployment.
Image of the week
Inflation has decreased in recent months and, in addition, fewer components have increased by over 10% in the past 12 months. Over 30% of components had increased by over 10% in the past 12 months in November 2023 and only 18% now in January.
Highlights of the previous week
- The Consumer Price Index fell by 0.16% between months in January, bringing 12M inflation down from 7.7% to 6.7% - it peaked at 10.2% in July of 2023. Air fares from Iceland decreased unexpectedly between months and new car prices increased much less than expected while other components changed more or less in line with expectations. We expect inflation to continue to decrease in the next months, to 6.1% in February, 6.3% in March and 5.1% in April. Dwindling inflation in the next three months is mainly a result of the significant increase that occurred between months in February through to April 2023; months that disappear from 12M inflation figures in coming months.
- The CBI published the results of its market expectations survey carried out 22-24 January before Statistics Iceland released inflation figures for January. There was no change to market expectations for inflation in the first half of 2024 as compared with the November survey, with the median response unchanged at 6.9% for the first quarter and 6.0% for the second quarter. Instead of 5.0% inflation in the fourth quarter of 2024, the market now expects 5.5% inflation. Many more respondents than in November now consider the monetary policy stance to tight and most expect the first policy rate cut in the second quarter.
- The Icelandic Tourist Board published its summary for 2023.
- Landsbankinn and Icelandair (IR presentation) published annual financial statements for 2023, Eik published internal accounts and Alvotech announced positive results of pharmacokinetic testing of AVT03.
- ÍL-sjóður offered switches.
Statistics and market data
Disclaimer
This review and/or summary is marketing material intended for information purposes and not for business purposes. This marketing material does not contain investment advice or independent investment 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.Information about the prices of domestic shares, bonds and/or indices is source from Nasdaq Iceland - the Stock Exchange. Landsbankinn’s website contains further information under each individual equity, bond class or index. Information about the prices of non-domestic financial instruments, indices and/or funds are sourced from parties Landsbankinn considers reliable. Past returns are not an indication of future returns.Information about the past returns of Landsbréf funds is based on information from Landsbréf. Detailed information about the historic performance of individual funds is available on Landsbankinn’s website, including on returns for the past 5 years. Information about the past performance of funds show nominal returns, unless otherwise stated. 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.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, available 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 (https://www.cb.is/financial-supervision/)You may also be interested in
4 Nov. 2025
Monthly newsletter of current economic affairs in Iceland.
22 Oct. 2025
The Icelandic economy will grow at a slow pace in coming years, according to a new economic forecast from Landsbankinn Economic Research. Gross domestic product (GDP) contracted by 1.0% last year, largely due to a negative contribution from foreign trade, but this year the outlook is for 1,5% growth in GDP. Strong private consumption and increased exports appear to have vitalised the economy this year; however, various forces are restraining growth and will continue to cool the system in the years ahead.
1 Oct. 2025
Monthly newsletter of current economic affairs in Iceland.
1 Sept. 2025
Monthly newsletter of current economic affairs in Iceland.
1 August 2025
Monthly newsletter of current economic affairs in Iceland.
9 April 2025
Landsbankinn Economic Research forecasts 1.4% economic growth this year and 2.1% next year. The economy has cooled down following a robust period of growth in the years after the pandemic and we now anticipate a slow start.
1 April 2025
Monthly statistics analysis and an overview of current economic affairs in Iceland.