The Consumer Price Index based on prices in April 2014 is 421.0 points (May 1988=100), 0.31% higher than in March 2014. The CPI less housing cost is 396.0 points, 0.05% higher than in March.
Cost of owner occupied housing (imputed rent) rose by 1.4% (effect on the index (0.20%). Cost of mobile telephone services decreased by 7.6% (-0.12%) and prices of groceries by 0.6% (-0.11%). Prices of petrol and diesel oil increased by 2.6% (0.11%) and airfares rose by 6.0% (0.11%).

The CPI is 2.3% higher in April 2014 than in April 2013 and the CPI less housing cost is 1.0% higher than one year ago. Over the last three months, the CPI has increased by 1.2%, equivalent to an annual inflation rate of 5.0% (4.7% inflation for the CPI less housing cost).

The CPI compiled in the middle of April 2014, 421.0 points, is applicable for indexation purposes in June 2014. The old credit terms index for June 2014 is 8,313 points.

The consumer price index is now published on a new base, March 2014. The rebasing of the index is primarily built on Statistics Iceland’s household expenditure survey 2010–2012. In addition, Statistics Iceland has used other sources where more recent and reliable information is available, for example, data on new car registrations. Outlet weights used in the calculation of price changes of groceries in the CPI have been revised leading to a 0.02% increase of the index. The rebasing of the index does otherwise not have any price effects on the CPI between March and April. Expenditure shares according to the new and old base in March 2014 can be found here.

In this month’s compilation of the consumer price index a change is made to include airfare prices in the compilation at the time when the intended service is to be provided. This is in coherence with new guidelines from Eurostat regarding the Harmonised Index of Consumer Prices.  The effect of the change will emerge in the index from April to June 2014. Further information on the change can be found here.