Iceland Exchange Rate (ISK per EUR, aop)

Exchange Rate in Iceland

Inflation softened to a six-month low of 9.5% in May (April: 9.9%) due to slower price increases for food, and transport. Headline inflation is expected to decline this year on slowing activity and tighter monetary policy. However, price pressures will average markedly above the Central Bank’s 2.5% target. Currency weakness and robust domestic demand pose upside risks.