Report to the Prime Minister on inflation above the upper deviation threshold of the inflation target
The Central Bank of Iceland has sent the Prime Minister a report on inflation above the upper deviation threshold of the inflation target in January 2021.
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 must 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.
The report can be found here.
A letter to the Prime Minister in connection with the report can be found here (a translation of the letter).
Monetary Bulletin 2021/1 can be found here.