Iceland's Ministry of Finance and Economic Affairs announced the start of tripartite talks between the state, the Icelandic Confederation of Labour and the Confederation of Icelandic Enterprise aimed at preserving the assumptions underpinning collective agreements in the general labour market in autumn 2026. The work will look for ways to curb inflation and produce analysis to support further assessment of the situation. A steering group has been appointed with representatives from the Prime Minister's Office, the Ministry of Finance and Economic Affairs, the Icelandic Confederation of Labour and the Confederation of Icelandic Enterprise, supported by three subgroups. Two of the groups also include representatives from BSRB, BHM, the Icelandic Teachers' Union and the Association of Local Authorities in Iceland. The subgroups will examine the effects of interest rates, inflation and indexation on different social groups, options to reduce automatic price changes, and ways to strengthen wage statistics. The steering group will also seek an assessment of how the war in the Persian Gulf could affect domestic price developments. The groups are starting work now and are due to finish in early September. Progress on the analysis will be presented at meetings of the National Economic Council in June and September.

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