The Consumer Price Index (CPI) based on prices in June 2025, is 656.5 points (May 1988=100), 0.84% higher than in the previous month. The CPI less housing cost is 526.8 points, 0.90% higher than in May 2025.
Cost of owner occupied housing (imputed rent) increased by 0.7% (effect on index 0.13%). Prices of international airfares increased by 12.7% (0.27%) and prices of hotels, cafés and restaurants increased by 2.3% (0.12%).
The CPI is 4.2% higher in June 2025 than in June 2024 and the CPI less housing cost is 3.2% higher than one year ago.
The CPI compiled in the middle of June 2025, 656.5 points, is applicable for indexation purposes in August 2025.
About the data
Since June 2024, Statistics Iceland has assessed imputed rent using a rental equivalence method. The model is based on residential rental contracts that Statistics Iceland considers to reflect market rents, sourced from the rental database of HMS along with older information from registered rental contracts.
In June 2025, around 14,500 contracts were used, of which approximately 45% were indexed. Most indexed contracts are linked to the Consumer Price Index (CPI) with monthly price adjustments. Over the past year, 800 to 1,000 new contracts were added each month, except in September, when the number of new contracts exceeded 1,200. New contracts are most frequently established for one year, with the remaining contracts spanning shorter or longer than one year or indefinitely.