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Hitt og þetta 11. júlí 2006

(IFN) Iceland inflation to rise to 8.7% ? Glitinir

Reykjavik (IFN) Iceland's consumer price inflation will rise to a 8.7% yearly rate in July from 8% in June, Glitnir Bank said in a research note.

The bank expects a 0.7% monthly rise but admits that upward risk is greater than on the downside, adding that a cooling housing market may be a key factor to moderate inflation in coming months.

Glitnir said that recent hawkish central bank comments are overly pessimistic about inflation outlook.

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