According to the joint declaration on the inflation target by the Central Bank of Iceland and the Government of Iceland, the Central Bank must submit a report to the Government if inflation falls below 1% or rises above 4%. These deviation limits do not entail any other formal requirements vis-à-vis the Central Bank. The report must explain the reasons for the deviation, how the Bank intends to respond, and how long the Bank anticipates that it will take to bring inflation back to the target.

Recent reports:

• Report to the Government on inflation above the upper deviation threshold of the inflation target, 5 February 2021

• Letter sent to the Prime Minister together with the report to the Government on inflation below the tolerance limit, 5 February 2021

Previous reports:

• Report to the Government on inflation below the tolerance limit, 9 September 2016

• Letter sent to the Minister of Finance and Economic Affairs after it emerged that because of an error in Statistics Iceland‘s inflation measurements, the August 2016 report to the Government on inflation below deviation limits was not necessary

• Report to the Government on inflation below the deviation threshold, 29 December 2014 

• Report to the Government on inflation above the deviation threshold, 6 January 2014  

• Report to the Government on inflation above the deviation threshold, 12 September 2013 

• Report to the Government on inflation above the deviation threshold, 30 June 2011

• Report to the Government on inflation above the deviation threshold,19 September 2005

• Report to the Government on inflation above the deviation threshold, 18 February 2005 

• Report to the Government on the inflation target, 20 June 2001