Prices of food and beverages rose by 4.3% (effect on the index 0.55%), clothing and footwear prices increased 4.9% (0.22%), furnitures and household equipment prices rose by 7.1% (0.46%), prices of spareparts and tyres increased 19.6% (0.20%), fares on international flights increased 18.7% (0.20%) and prices of TV-sets, DVD-players etc rose by 10.6% (0.15%).
Prices of petrol and diesel oil fell by 3.4% (-0.17%).
Cost of owner occupied housing declined 1.3% (-0.21%), thereof the effect of lower market prices was -0.24% and of higher real interest rate 0.03%.
In domestic housing trade the share of non-monetary payments such as real estate and liquid assets has increased considerably since May this year. The required rate of return on these non-monetary assets in computing the present value of the sales contracts has been increased and the index recalculated back to May with respect to this change. The effect of this correction lowers the index by 0.22%.
Sales data on registration of new cars show that car sales have almost stopped in the present economic turmoil. Owing to this market situation in the country Statistics Iceland has decided not to include in the price measurement this month changes in catalogue prices of new cars. If catalogue prices had been used the index for cars would have increased 4.1% (0.30% effect on the CPI).
The CPI in October 2008 is 15.9% higher than in October 2007 while the CPI less housing cost is 17.8% higher than one year ago. Over the last three months, the CPI has increased 4.0%, equivalent to an annual inflation rate of 16.8% (22.7% for the CPI less housing cost).
The CPI compiled at the middle of October, 322.3 points, is applicable for indexation purposes in December 2008. The old credit terms index for December 2008 is 6,364 points.
| The Icelandic consumer price index 2007-2008 | ||||||
| May 1988 = 100 | Annualized rates | |||||
| Monthly index | Monthly changes | Latest month | Latest 3 months | Latest 6 months | Latest 12 months | |
| 2007 | ||||||
| August | 273.1 | 0.0 | 0.4 | 3.1 | 3.8 | 3.4 |
| September | 276.7 | 1.3 | 17.0 | 6.5 | 7.3 | 4.2 |
| October | 278.1 | 0.5 | 6.2 | 7.7 | 7.1 | 4.5 |
| November | 279.9 | 0.6 | 8.0 | 10.3 | 6.7 | 5.2 |
| December | 281.8 | 0.7 | 8.5 | 7.6 | 7.0 | 5.9 |
| 2008 | ||||||
| January | 282.3 | 0.2 | 2.2 | 6.2 | 6.9 | 5.8 |
| February | 286.2 | 1.4 | 17.9 | 9.3 | 9.8 | 6.8 |
| March | 290.4 | 1.5 | 19.1 | 12.8 | 10.1 | 8.7 |
| April | 300.3 | 3.4 | 49.5 | 28.0 | 16.6 | 11.8 |
| May | 304.4 | 1.4 | 17.7 | 28.0 | 18.3 | 12.3 |
| June | 307.1 | 0.9 | 11.2 | 25.1 | 18.8 | 12.7 |
| July | 310.0 | 0.9 | 11.9 | 13.6 | 20.6 | 13.6 |
| August | 312.8 | 0.9 | 11.4 | 11.5 | 19.5 | 14.5 |
| September | 315.5 | 0.9 | 10.9 | 11.4 | 18.0 | 14.0 |
| October | 322.3 | 2.2 | 29.2 | 16.8 | 15.2 | 15.9 |
| Percentage changes, not seasonally adjusted. | ||||||
| Consumer price index by economic categories 2008 | ||||
| Subindices March 1997=100 | Change in the last 12 months | |||
| Effect on the index | ||||
| September | October | % | ||
| Consumer Price Index | 176.8 | 180.6 | 15.9 | 15.9 |
| Thereof: | ||||
| Domestic goods | 152.3 | 157.6 | 18.5 | 2.4 |
| Agricultural products | 148.5 | 152.5 | 17.4 | 1.0 |
| Domestic goods less agricultural products and vegetables | 154.5 | 160.7 | 19.2 | 1.4 |
| Imported goods | 144.5 | 150.0 | 23.2 | 7.9 |
| Imported goods less, alcohol and tobacco | 140.9 | 146.5 | 24.6 | 7.6 |
| Core index 1 (CPI less agric. prod., vegetables, | ||||
| fruits and petrol) | 177.0 | 181.2 | 14.9 | 13.3 |
| Core index 2 (core index 1 less public services) | 179.0 | 183.4 | 15.6 | 12.9 |
| Core index 3 (core index 2 less effects of interest rate) | 176.4 | 180.8 | 14.1 | 11.6 |
| Groceries (perishable items) | 151.6 | 158.7 | 25.2 | 3.6 |