- Monthly Economic Bulletin
Rising inflation at the beginning of the year
Inflation surged in January despite the conventional effects of post-holiday sales. The increase is due mostly to the impact on core inflation of changes to the Consumer Price Index (CPI) made last January.
Use of payment cards domestically in Q4 2011 indicates continued growth of private consumption towards the end of the year. Registered unemployment decreased between years, from 8.0% at the end of 2010 to 7.3% at year-end 2011. Real estate prices increased in 2011 by 9.1% in terms of nominal value and 3.2% in real value in the capital region.
Throughout the year, price developments were similar in the capital region and in rural regions but prices fell in rural areas in January while they increased in the capital region.
While there was a trade surplus for the third year running, the surplus was slightly lower than in previous years due to the fact that import increased more rapidly than export. The effects of capital controls on the securities market are becoming increasingly pronounced and yields on the shortest indexed bond class have fallen to -7.7%.
Vegvísir - monthly economic bulletin - January 2012
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