Statistics Iceland has now revised its estimate of household disposable income for the period 2000-2007 that was last published on 7th September. These revisions are based on new information on interest income on individuals’ bank deposits during this time, made available by banks and other depository institutions for the first time for 2008. This led to the conclusion that the previous years’ data on household disposable income were incomparable to that of 2008. It was, therefore, decided to amend the previous years’ data based on the new information on interest on individuals’ bank deposits. It should be emphasised here that the data for 2008 have not changed. Revisions have, instead, led to percentage change in the disposable income of households over the time period 2000-2007.

According to revised data on interest accrued on bank deposits in the year 2007, the new figures are in the region of ISK 45 billion compared to ISK 26 billion as published previously. These revised data have emerged as a result of realisation of financial gains tax on interest income for the year in question.

Disposable income of households has risen by 14.9% in 2008 from 2007, when the revision in interest income is taken into account. Disposable income per capita increased by 12.1%, while the purchasing power per capita decreased by 0.3% during this period. Total income of households has increased by 12.6% between 2007 and 2008 at current prices and total expenditure by 9%.