More Fuel for the Fire

With the kronur still very weak against all other currencies and the prime interest rate holding steady at 13%, Everyone was looking for some relief from the crisis in the lowering of the inflation rate.  The rate was as high as 18% and has come down to around 11%.  Last month there was a slight tick upwards as the weak kronur took it's toll on imported goods. But there was a chance, with a small strengthening of the kronur over the last few days, that next month would see the inflation rate drop again as house prices continue to fall. 

But leave it to the government to take the only glimmer of hope left in Iceland and destroy it with a tax increase on the one item that effects the price of nearly everything else-FUEL. This will cause a rise in inflation and increase all indexed linked loans, the most important being house loans. This will be coulpled with a rise in food prices as it will cost more for delivery. Add any poor souls who have to drive to work or drive for work and the damage for them will be even greater.

As if we were not burdened with enough debt, the have decided to add a little more.  This new government did promise to help us, we just didn't know they meant help us go further into debt.  Break out the pots and pans, they seem to be needed once again.

 

GTB

Álögur á eldsneyti og áfengi hækka