The CPI compiled in May 2005 is 240.7 points (May 1988=100), 0.54% lower than in the previous month. The CPI less housing cost is 227.4 points, 0.39% lower than in April.

Groceries' prices fell by 4.0% (effect on the CPI -0.65%) owing to an active price competition in the retail market. 

Owner occupied housing was 1.4% lower (-0.21%). As outlined in a news release on 3 May, Statistics Iceland has changed the method for averaging real mortage rates in the calculation of owner occupied housing in the CPI, applying a twelve month moving average instead of an average of five years. This change led to a 0.45% lowering of the CPI. Furthermore, this twelve month average fell by an equivalent of 0,11% between April and May. Against this, market prices of houses rose by 2.3% (0.35%).
Prices of fuels rose by 3.8% (0.18%) and prices of clothing and footwear rose by 1.9% (0.10%).

The CPI in May 2005 is 2.9% higher than in May 2004 and the CPI less housing cost is the same as in May 2004. The CPI rose by 0.4% over the last three months equivalent to an annual inflation of 1.7% (CPI less housing cost: 2.1% deflation). 

The credit term index in June 2005 is 240.7 points. The old credit term index is 4,753 points in June 2005.