Efling criticizes Central Bank’s monetary policy amid inflation concerns in Iceland

Efling, a prominent trade union in Iceland, has harshly criticized the monetary policy of the Central Bank. In a recent statement, Efling asserted that it is not low-income individuals or those with fewer assets who are fueling inflation, but rather those who are wealthier.

According to a new survey conducted by Vörður, a labor market research institute, more than half of Efling’s members struggle to make ends meet. Efling characterized the actions of the Central Bank as unfair and ineffective, adversely impacting this vulnerable group.

Efling’s leadership is urging the government to take action and explore alternatives that address the root causes of inflation. They propose initiatives such as slowing growth in the tourism sector and reducing consumption among the affluent as potential solutions. The need for decisive intervention in the housing market is also emphasized in the statement.

Overall, Efling’s critique points to systemic issues within the economy and seeks more targeted measures to alleviate the financial struggles faced by many households in Iceland.