The Central Bank of Iceland has sent the Government a public report after inflation in September 2025 rose above the deviation threshold set for Iceland’s inflation target. The reporting requirement is triggered when inflation deviates by more than 1.5 percentage points from the 2.5% target. Under the joint declaration by the Bank and the Government dated 27 March 2001, the report must explain the reasons for the deviation, how the Bank intends to respond, and the Bank’s assessment of how long it will take to return inflation to target. The publication package also includes a letter to the Prime Minister and related monetary policy documents, including Monetary Bulletin 2025/3, the Monetary Policy Committee’s statement of 8 October 2025, and minutes from the Committee’s 18–19 August 2025 meeting.
Central Bank of Iceland 2025-10-13
Central Bank of Iceland submits mandatory Government report after inflation breaches the inflation target deviation threshold
The Central Bank of Iceland submitted a report to the Government after September 2025 inflation exceeded the 1.5 percentage point deviation threshold from the 2.5% target, detailing reasons for the deviation, response plans, and timeline for returning to target. The report includes a letter to the Prime Minister and related monetary policy documents.