The Consumer Price Index (CPI) based on prices in February 2022, is 523.9 points (May 1988=100), 1.16% higher than in the previous month. The CPI less housing cost is 440.3 points, 1.26% higher than in January 2022.
Prices of furnishing, household equipment etc. increased by 7.5% (effect on the index 0.47%), cost of owner occupied housing (imputed rent) increased by 1.2% (0.22%), prices of food and non-alcoholic beverages increased by 0.8% (0.11%) and prices of petrol and diesel oil increased by 3.6% (0.11%). International airfares decreased by 9.7% (-0.14%).
The CPI is 6.2% higher in February 2022 than in February 2021 and the CPI less housing cost is 4.2% higher than one year ago.
The CPI compiled in the middle of February 2022, 523.9 points, is applicable for indexation purposes in April 2022. The old credit terms index for April 2022 is 10,344 points.
In this compilation of the CPI and onwards the nominal value of real estate contracts will be used instead of present values in order to estimate the annuity for the imputed rent (COICOP 042). This is due to changes made by Registers Iceland in registration of information details from real estate contracts. Registers Iceland announced the change in a news release in Icelandic on 21 December 2021.
The difference of nominal values and present values are considered insignificant as the general progress for settling real estate contracts is concluded in a short amount of time. The difference between nominal values and present values does not have an effect on the imputed rent index as the monthly compilation always relies on the comparison of the same type of varible.