The Consumer Price Index (CPI) based on prices in April 2022, is 535.4 points (May 1988=100), 1.25% higher than in the previous month. The CPI less housing cost is 448.3 points, 0.99% higher than in March 2022.
Prices of food and drinks increased by 1.4% (effect on index 0.20% of which milk products were 0.13%). Cost of owner occupied housing (imputed rent) increased by 2.4% (0.45%). Prices of international flights increased by 22.9% (0.37%).
The CPI is 7.2% higher in April 2022 than in April 2021 and the CPI less housing cost is 5.3% higher than one year ago.
The CPI compiled in the middle of April 2022, 535.4 points, is applicable for indexation purposes in June 2022. The old credit terms index for June 2022 is 10,571 points.
Updated consumption weights
The consumer price index is now published on a new base, March 2022. The new base reflects the outcome of Statistics Iceland’s household expenditure survey 2018–2020. The three-year period is aimed to emphasise long-term change and reduce short-term fluctuation. Furthermore Statistics Iceland utilises additional sources to consolidate results.
A new approach is used to derive the weight for „043 Regular maintenance of the dwelling“. The weight is now valued as a proportion of rents (both actual and imputed) in a similar way as is applied in the valuation of the same item in private consumption (HFCE). This results in a reduced weight for the item in the CPI. The rebasing of the index does not in itself have any effect on the CPI results in April. Expenditure shares according to the new and old base in March 2022 can be found in a memorandum here.