« The problem with the oblivion »

« The rise in inflation is a surprise to me only, but a large part is an increase in airfare that is temporary due to Easter. However, I am concerned about food and gasoline prices. »

This is stated by Finnbjörn Hermannsson, president of the People’s Union, to mbl.is when his response to the latest inflation figures was sought.

Inflation now measures 4.2 percent, increasing by 0.4 percent, and this is the first time in almost a year that inflation grows between months.

« It seems to me that grocery stores and the oil companies are taking more than they are than they are and this is just the problem with the oblivion, » says Finnbjörn.

Shot that goes back

Are you worried about the situation?

« No, I don’t really have it. I think this is just a shot that goes back. If we look ahead, it is cool in the economy and I rather hope that this will not have a big impact on the Central Bank’s decision on the policy rate, » says Finnbjörn.

Finnbjörn says that the Monetary Policy Committee may be more prudent than it would have been otherwise, but he expects the policy rate to be lowered when the Monetary Policy Committee announces the next policy rate decision on May 21.

« I want to see the policy rate fall, as far as the next policy rate decision after those coming in May. I hope the committee looks similar to the situation and will lower the interest rate. »