The Consumer Price Index (CPI) based on prices in January 2025, is 635.5 points (May 1988=100), 0.27% lower than in the previous month. The CPI less housing cost is 510.2 points, 0.29% lower than in December 2024.
Prices of alcoholic beverages and tobacco increased by 3.9% (effect on index 0.10%) and cost of electricity and hot water increased by 3.5% (0.11%). Furthermore, prices of petrol and diesel oil increased by 3.6% (0.13%).
Winter sales are ongoing and prices of clothing and footwear decreased by 6.9% (-0.26%), furniture, furnishings, etc by 4.6% (-0.23%) and household appliances decreased by 9.5%(-0.11%). Prices of international flights decreased by 16.1% (-0.36%).
The CPI is 4.6% higher in January 2025 than in January 2024 and the CPI less housing cost is 3.0% higher than one year ago.
The CPI compiled in the middle of January 2025, 635.5 points, is applicable for indexation purposes in March 2025.
Updated consumption weights
The consumer price index is now published on a new base, December 2024. The new base is based on the outcome of Statistics Iceland's household expenditure survey 2021–2023 along with other consolidating data. The three-year period is aimed to emphasise long-term change and reduce short-term fluctuation. If there have been major changes in consumption of a certain class, other and possibly newer data is used to get a better estimate of today's consumption pattern.
Due to an increased weight of nicotine products in household consumption expenditures, a new subclass has been added under 022 Tobacco.
The rebasing of the index does not in itself cause changes in the index between December and January. The relative division of the index on the old and new basis in December 2024 can be found in the attached memorandum.