News

The CPI increases by 0.8% between months

The Consumer Price Index based on prices in April is 398.2 points (May 1988=100), 0.78% higher than in the previous month. The CPI less housing cost is 378.7 points, 0.74% higher than in March.

Prices of clothing and footwear rose by 2.6% (effect on the index 0.14%), prices of food and non-alcoholic beverages by 1.0% (0.14%) and prices of petrol and diesel oil by 1.9% (0.12%). Cost of owner occupied increased by 1.0% (0.13%) of which 0.19% effect stems from higher market prices of housing and -0.06% effect from lower real interest rates.

The CPI is 6.4% higher in April 2012 than in April 2011 and the CPI less housing cost is 6.3% higher than one year ago. Over the last three months, the CPI has increased by 2.9%, equivalent to an annual inflation rate of 12.0% (14.7% inflation for the CPI less housing cost).

The CPI compiled in the middle of April 2012, 398.2 points, is applicable for indexation purposes in June 2012. The old credit terms index for June 2012 is 7,862 points.

The consumer price index is now published on a new base, March 2012. The rebasing of the index is primarily built on Statistics Iceland’s household expenditure survey 2008–2010. Exceptions can be made in cases where more recent information, from reliable sources, is available. These sources include data on new car registrations and data on VAT turnover in the retail market. The outlet weights used in the calculation of price changes of groceries in the CPI have been changed but the effect of that on the monthly change in April is insignificant. It should be pointed out that the rebasing of the index does otherwise not have any price effects on the CPI. Expenditure shares according to the new and old base in March 2012 can be found here.