The Central Bank of Iceland has sent the Government a report on inflation above the upper deviation threshold of the inflation target in April 2025.
The inflation target is set in a joint declaration issued by the Bank and the Government on 27 March 2001. If inflation deviates by more than 1½ percentage points in either direction from the target of 2½%, the Bank is obliged to submit a public report to the Government, explaining the reasons for the deviation, how the Bank intends to react and how long it will take to reach the inflation target again in the Bank’s assessment.
See the report, the letter to the Prime Minister and other related documents below: