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Finance Minister Sigurður Ingi Jóhannsson is not optimistic about a faster decline in inflation, which is currently at 5.8 percent, the first time it has been below 6 percent in two and a half years.
“The best news is that she is heading in the right direction. We still know that different areas of society are expanding significantly, though not all of them. That’s why she is proving to be even more persistent,” says Sigurður Ingi.
While inflation is slowing, most of the index’s subcomponents are rising and are expected to rise again when more months of the previous year are excluded from the annual measurement.
“Yeah, I’m not necessarily optimistic that we’re going to see it go down faster, to be honest, we have more signs that it’s going to be harder. That’s why I think it’s important for everybody to keep that in mind. We’re not going to get through this unless everybody comes together.”
Long-term collective agreements alone are not enough
He said the government’s financial focus was on response.
“That’s what we stressed in next year’s budget, that it will be constrained in order to reduce inflation and interest rates. But this won’t happen unless all members of society join hands. Four years of collective agreement is a very strong message. But more is needed,” says Sigurður Ingi Jóhannsson.
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