This press release was published 28 May 2020 at 12:00. The press release is a correction of a press release, which was published at 9:00 whereas an error in prices of fuels affected the overall CPI in May. Statistics have been updated with correct results for May 2020.
The Consumer Price Index (CPI) based on prices in May 2020 is 480.1 points (May 1988=100), 0.54% higher than in the previous month. The CPI less housing cost is 410.6 points, 0.88% higher than in April 2020.
Cost of owner occupied housing (imputed rent) decreased by 0.6% (effect on index -0.11%). Prices of food and drinks increased by 1.6% (0.24%). Prices of furniture and furnishings increased by 2.9% (0.16%). Prices of new cars increased by 3.7% (0.2%) from last month and prices of fuels decreased by 3.4% (-0.11%)
The CPI is 2.6% higher in May 2020 than in May 2019 and the CPI less housing cost is 2.6% higher than one year ago.
The CPI compiled in the middle of May 2020, 480.1 points, is applicable for indexation purposes in July 2020. The old credit terms index for July 2020 is 9,480 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|
Percentage changes, not seasonally adjusted
The measurement of the CPI in light of Covid-19
The measurement and compilation of the CPI in May did pass normally. Whereas the Icelandic authorities were able to relax many of the protection measures, which were installed to prevent further spread of the Covid-19 virus, many shops and firms which had closed were able to reopen. This lead to less complications in acquiring data than before.
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 5% of the CPI weights in May have been measured with imputed prices where price measurements were not possible due to temporary closing of companies or stores because of Covid-19.
Statistics Iceland has been working in cooperation with statistical offices all over Europe, including Eurostat, to apply harmonised imputation methods to consumption items which have been in limited supply or inaccessible as the challenges have been the same in all the countries.
Statistics Iceland is at all times committed to measure prices as accurately as possible. However, in extraordinary circumstances, when certain prices deviate strongly from the norm, special measures are taken. Therefore, sudden jumps in consumer categories, with little or no trading, are not to be expected.