According to preliminary figures, household gross disposable income is estimated to have increased by 13.6% in 2023, compared with the previous year. Disposable income per capita amounted to just over 5.8 million ISK and is estimated to have increased by 10.8%. Due to increased inflation rate, the purchasing power of household disposable income per capita 2023 increased by 1.9% compared with the previous year, but the consumer price index increased by 8.8% during the same period.
Final figures for 2023 will be published in march 2025 when more exhaustive information is available on business operations.
Household total income increased by 12.8% in 2023 compared with the previous year where wages and salaries increased by 12% and property income increased by 27.1%. Social benefits other than social transfers in kind increased by 10.5% in 2023, the bulk of which can be attributed to a 19% increase in pension income while social benefits from social security funds increased by 3.4% and other social insurance benefits by 4.3%
Household expenditure increased by 11.7% in 2023 compared with the previous year where taxes on wages and salaries increased by 11% and interest expenses increased by 27.3%
Revision of previously published statistics
In March, Statistics Iceland published preliminary figures for the year 2023 which stated that Household disposable income increased by 9.6% in the year. The main difference lies in underestimated wages in 2023 in the preliminary figures.
The change in purchasing power in 2021-2022 can mostly be attributed to updated wage figures in the period.
According to new preliminary figures for 2024 the purchasing power of household disposable income per capita increased by 1.2% in the first quarter of 2024 and decreased by 1.8% in the second quarter.
Household disposable income increased by 6.6% in the second quarter of 2024 compared with last year‘s corresponding quarter. Disposable income per capita amounted to roughly 1.6 million ISK in the quarter and is estimated to have increased by 4%. The purchasing power of household disposable income per capita decreased by 1.8% due to an increase in the consumer price index by 6% in the same period.
Household total income increased by 6.7% in the second quarter of 2024 where wages and salaries increased by 6.4% and property income increased by 17.5%.
Social benefits other than social transfers in kind are estimated to have increased by 11.5% and amounted to 15% of household total income in the quarter. The household sector net social contribution increased by 4.5% compared with last year‘s corresponding quarter.
Household total expenditure increased by 6.9% in the second quarter of 2023 where taxes on wages and salaries increased by 5.3% and interest expenses increased by 13.3%.