Household gross disposable income is estimated to have increased by 7.1% in the third quarter of 2025, compared with last year‘s corresponding quarter. Disposable income per capita amounted to little over 1.6 million ISK in the quarter and is estimated to have increased by 5.9% compared with the third quarter of 2024. Due to inflation rate, the purchasing power of household disposable income per capita in the third quarter of 2025 increased by 1.9% compared with last year’s corresponding quarter, but the consumer price index increased by 4% during the same period.
Relative change in quarterly purchasing power per capita
The total income of the household sector increased by 6.7% in the third quarter of 2025 compared with the third quarter of the previous year. The largest increase was in wages and salaries which are estimated to have increased by 7.3% from last year’s corresponding quarter.
Social benefits, covering social benefits and pensions paid, increased by 6.4% in the third quarter and accounted for 15.5% of total household income.
Total expenditure of the household sector increased by 6.1% in the third quarter of 2025 compared with the third quarter of the previous year. Taxes on income are estimated to have increased by 6.9% and net social contributions by 4.2% from last year’s corresponding quarter.
Property expenditure is estimated to have increased by 3.1% in the third quarter of 2025 compared with last year’s corresponding quarter where interest payments increased by 3% during the same period.
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.
Following the revision of the national accounts published in May this year, consumption of fixed capital in the sector accounts was not updated accordingly. This has been corrected in the current release, and depreciation is now consistent with the revised national accounts data.