Iceland inflation soars to 17.1%

Kaupthing bank
Icelanders found it difficult to cope with soaring prices

The annual rate of inflation in Iceland has escalated to a record high of 17.1% as the country battles the worst financial crisis in its history.

The Icelandic statistics agency said prices rose in November alone by 1.74% compared to the previous month.

Food prices increased fastest, up 30.6% over the year, as the country's currency plummeted.

The agency warned that inflation rate could rise beyond 20% in the future, threatening the economy.

At its last meeting, at the beginning of November, the Icelandic central bank left interest rates unchanged at 18%, the highest level in Europe, in an effort to fight inflation.

Prices of imported goods have risen fast after the local currency, the Icelandic krona, plunged amid global financial turmoil.

The International Monetary Fund (IMF) has recently approved a $2.1bn (£1.4bn) loan for Iceland, after the country's banking system collapsed in October.

Iceland's government seized control of all three of the nation's major banks in a bid to keep the country's financial system afloat.

Iniciado por El río de la vida

Pobre gente, seguro que los políticos, banqueros y chorizos en general no pasan penurias, pero el pueblo estarán viéndolas venir.

Iniciado por PutinRetarded

¿Sólo un 17%?

¿Pero no se decía en este foro que el dinero de Islandia ya no valía nada de un día para otro? ¿y ahora resulta que sólo ha perdido un 17% de su valor? Pues vaya chasco.


Han perdido mucho más los Islandeses que compraran plata hace unos meses. Y seguro que se descojonaban de sus semejantes en los foros burbujistas islandeses.

Iniciado por PutinRetarded

¿Sólo un 17%?

¿Pero no se decía en este foro que el dinero de Islandia ya no valía nada de un día para otro? ¿y ahora resulta que sólo ha perdido un 17% de su valor? Pues vaya chasco.


Han perdido mucho más los Islandeses que compraran plata hace unos meses. Y seguro que se descojonaban de sus semejantes en los foros burbujistas islandeses.

Iniciado por Plácido

Lo peor.... Si da quiebra su selección de Balonmano.

Iniciado por alarife

¿ Alguien aportaría datos sobre la balanza comercial de Islandia ? ... (ya sé que la puedo buscar por Google pero es más cómodo que lo haga otro) se agradece

The current account deficit in the former half of the year totalled almost 27% of GDP, and around mid-year the net IIP was negative by ISK 2,095, equalling about 160% of GDP. The makeup of the current account balance has also changed substantially in recent years as factor income, especially financial revenues and expenditures, have played an increasingly bigger role. Accordingly, three quarters of the current account deficit in the first half of the year can be traced to factor income.

About 85% of Iceland's net external debt around mid-year was the debt of depository institutions. A large share of this debt will now be wiped out, and, similarly, the country's foreign assets will shrink substantially. The share of factor income in the development of the current account balance is similarly likely to contract.