Household gross disposable income is estimated to have increased by 5.8% in the third quarter of 2022 compared with last year‘s corresponding quarter. Disposable income per capita amounted to close to 1.2 million ISK in the quarter and is estimated to have increased by 2.9% compared with the third quarter of 2021. Due to increased inflation rate, the purchasing power of household disposable income per capita in the third quarter of 2022 decreased by 6.1% compared with last year’s corresponding quarter, but the consumer price index increased by 9.7% during the same period.
The total income of the household sector increased by 10.2% in the third quarter of 2022 compared with the third quarter of the previous year. The largest increase was in wages and salaries which are estimated to have increased by 13.7% from last year’s corresponding quarter. It is estimated that property income increased by 18.0% during the same period, but income from interests increased by 61.5%. Social benefits increased by 0.6% after having increased considerably during the corresponding quarter of last year due to the measures taken by the Icelandic government to mitigate the economic impact of the Covid-19 pandemic.
Total expenditure of the household sector increased by roughly 16.6% in the third quarter of 2022 compared with the third quarter of the previous year. Taxes on income are estimated to have increased by 15.1% and that net social contributions increased by 14% from last year’s corresponding quarter. Property expenditure is estimated to have increased by 39.4% in the third quarter of 2022 compared with last year’s corresponding quarter where interest payments increased by 41.1% during the same period which can largely be attributed to the increase in interest rates on household debt.
These are preliminary figures and thus Statistics Iceland will publish revised figures when exhaustive information is available, e.g. tax returns from corporations and individuals.