The Consumer Price Index (CPI) based on prices in January 2015 is 419.3 points (May 1988=100), 0.71% lower than in December 2014. The CPI less housing cost is 389.2 points, 1.29% lower than in December.

Winter sales led to a 15.2% decrease in prices of clothing and footwear (effect on index -0.72%), prices of furnishing, household equipment etc. decreased by 4.9% (-0.22%) and prices of petrol and diesel oil decreased by 11.0% (-0.42%). Prices of food and non-alcoholic beverages rose by 2.6% (0.38%) and cost of owner occupied housing (imputed rent) rose by 1.3% (0.19%).

The CPI is 0,8% higher in January 2015 than in January 2014 while the CPI less housing cost is 0.6% lower than one year ago. Over the last three months, the CPI has decreased by 0.9%, equivalent to an annual deflation rate of 3.6% (6.5% annual deflation rate for the CPI less housing cost).

On January 1 tax changes took effect. General excise taxes and specific tax on sugar were abolished and upper level VAT rate decreased from 25.5% to 24.0% while the lower VAT rate (e.g. on food) increased from 7% to 11%. The effect of these changes on the CPI cannot be estimated separately, however it can be pointed out that the constant tax rate CPI decreased by 1.12% from the previous month. There the VAT, specific taxes on Alcohol, tobacco and fuels are kept at the December 2014 rate. Price changes due to the abolished excise taxes cannot be distinguished from other price changes in the CPI.

The CPI compiled in the middle of January 2015, 419.3 points, is applicable for indexation purposes in March 2015. The old credit terms index for March 2015 is 8,279 points.

Consumer price index by economic categories 2015
Subindices March 1997=100     Change in the last 12 months
     
        Effect on the index
  December January %
         
Consumer Price Index 236.6 234.9 0.8 0.8
Thereof:        
Domestic goods and vegetables 211.6 217.7 1.8 0.2
Agricultural products 197.0 205.3 1.1 0.1
Domestic goods less agricultural products 222.8 226.3 2.4 0.2
Imported goods 197.4 188.3 -5.0 -1.7
Imported goods less, alcohol and tobacco 188.2 178.7 -5.6 -1.7
Groceries (perishable items) 208.5 213.3 0.8 0.1

 

The Icelandic consumer price index 2014-2015
May 1988 = 100   Annualized rates
  Monthly index Monthly changes Latest month Latest 3 months Latest 6 months Latest 12 months
 
2014            
January 415.9 -0.7 -8.3 0.7 1.7 3.1
February 418.7 0.7 8.4 1.9 2.4 2.1
March 419.7 0.2 2.9 0.8 2.2 2.2
April 421.0 0.3 3.8 5.0 2.8 2.3
May 421.3 0.1 0.9 2.5 2.2 2.4
June 422.8 0.4 4.4 3.0 1.9 2.2
July 422.1 -0.2 -2.0 1.0 3.0 2.4
August 423.1 0.2 2.9 1.7 2.1 2.2
September 422.6 -0.1 -1.4 -0.2 1.4 1.8
October 423.2 0.1 1.7 1.0 1.0 1.9
November 421.0 -0.5 -6.1 -2.0 -0.1 1.0
December 422.3 0.3 3.8 -0.3 -0.2 0.8
2014            
January 419.3 -0.7 -8.2 -3.6 -1.3 0.8

Statistics