The Consumer Price Index (CPI) based on prices in July 2020 is 482.9 points (May 1988=100), 0.15% higher than in the previous month. The CPI less housing cost is 413.4 points, 0.17% higher than in June 2020.
Summer sales are in action causing a decrease in prices of clothing and footwear decreased by 3.6% (effect on the index -0.13%). The effect of summer sales was however not as much as for the last few years.
The CPI is 3.0% higher in July 2020 than in July 2019 and the CPI less housing cost is 3.3% higher than one year ago.
The CPI compiled in the middle of July 2020, 482.9 points, is applicable for indexation purposes in September 2020. The old credit terms index for September 2020 is 9,535 points.
| The Icelandic consumer price index 2019-2020 | ||||||
| May 1988 = 100 | Annualized rates | |||||
| Monthly index | Monthly changes | Latest month | Latest 3 months | Latest 6 months | Latest 12 months | |
| 2019 | ||||||
| July | 468.8 | -0.2 | -2.5 | 1.6 | 3.0 | 3.1 |
| August | 470.1 | 0.3 | 3.4 | 1.8 | 3.1 | 3.2 |
| September | 470.5 | 0.1 | 1.0 | 0.6 | 2.2 | 3.0 |
| October | 472.2 | 0.4 | 4.4 | 2.9 | 2.2 | 2.8 |
| November | 472.8 | 0.1 | 1.5 | 2.3 | 2.1 | 2.7 |
| December | 473.3 | 0.1 | 1.3 | 2.4 | 1.5 | 2.0 |
| 2020 | ||||||
| January | 469.8 | -0.7 | -8.5 | -2.0 | 0.4 | 1.7 |
| February | 474.1 | 0.9 | 11.6 | 1.1 | 1.7 | 2.4 |
| March | 475.2 | 0.2 | 2.8 | 1.6 | 2.0 | 2.1 |
| April | 477.5 | 0.5 | 6.0 | 6.7 | 2.3 | 2.2 |
| May | 480.1 | 0.5 | 6.7 | 5.2 | 3.1 | 2.6 |
| June | 482.2 | 0.4 | 5.4 | 6.0 | 3.8 | 2.6 |
| July | 482.9 | 0.1 | 1.8 | 4.6 | 5.7 | 3.0 |
The measurement of the CPI in light of Covid-19
The measurement and compilation of the CPI in July did pass normally with the exception of parts related to transport to and from the country where there still are missing measurements.
The challenges in measuring prices due to the situation were discussed thoroughly in the news release on the Consumer Price Index in April 2020. Statistics Iceland would also like to bring attention to the information website “Frequently asked questions about the Icelandic CPI”.
Statistics Iceland estimates that about 2% of the CPI weights in July have been measured with imputed prices where service was not available due to cancellations because of Covid-19.