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Inflation has reached 9.9%

During the last twelve months the Customer Price Index (CPI) risen to 9.9% and the index without including properties is 7.5%. This is reported in the latest data from Statistics Iceland.

On the website of Statistics Iceland it is reported that summer sales have lowered the price on clothes and shoes to 6.8% (impacts the index by -0.24%) and prices of furniture and household items have gone down 2.6% (-0.17% impact on index).

The cost of living in your own housing (calculated rent) has gone up 2.4% (0.47% impact on index) and the price of plane tickets have gone up 38.3% (0.72% impact on index).

The steep rise in cost of plane tickets to go abroad is partly explained by the hike in prices in July of 19.9% (0.43), but also because air travel was an underestimated part of the index in June 2022 (0.29%). The rise in cost of air travel should have been 20.4% in June, if it had not been underestimated. Now, the correction is showing in the index for July, but has not yet been incorporated into the June index.


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