Iceland’s Inflation Accelerates Again, Fueled by Airfares

Iceland’s inflation unexpectedly picked up for the second month in three, damping expectations for further easing by the Atlantic nation’s central bank.

The consumer price index in the island economy rose 4.2% on year, driven mainly by costs of international airfares, according to a statement from Iceland’s statistics agency on Friday. Lender Islandsbanki hf had projected the rate to stay at 3.8%, while its rival Landsbankinn hf had forecast a 3.9% gain.