Lilja urges government to lead effort for national accord

Framsóknarflokkurinn leader Lilja Dögg Alfreðsdóttir says the government must take the lead in securing a national accord to tackle inflation and rising public borrowing costs, mbl.is reports.

Annual inflation is now 5.9%, up from 5.6% the previous month. Alfreðsdóttir called the increase “very serious news” and said municipalities and businesses had stepped forward, while the government appeared to consider the issue someone else’s concern.

She said inflation was rising around the world because of prolonged conflict in Ukraine and uncertainty surrounding the Strait of Hormuz. She urged all parties to support the Central Bank of Iceland’s inflation target, saying higher fees and taxes on households and businesses would not help bring inflation down. A national accord was the only way forward, she said.

Alfreðsdóttir called on the government to abandon planned fixed-amount increases, examine their impact on households and respond to the breakdown of a precondition in collective agreements. Extending those agreements would require a national accord, she said.

She added that more than a year had been lost in the fight against inflation because the government had not taken the issue seriously enough. Inflation had been falling rapidly from 2023 through 2025, she said, but the 2026 budget was neutral at best and included substantial increases in many areas.