The building cost index compiled in the middle of April 2011 is 106.7 points (December 2009=100), 4.1% higher than in the previous month. The index applies to May 2011. The effect of correction made due to a system error in calculations, previously announced on 12 April 2011, is 3.6%. Without the correction the Index would have risen by 0.5%. Statistics Iceland is changing the method for labour cost measurements back to measuring labour union contract rates, in addition to estimating other labour costs, as was done until January 2010. For further information see attached memorandum.

A new corrected shadow time series from January 2010 to April 2011, which can be used in revaluating settlements of indexed contracts, is also published at this time. The earlier labour cost method is used in the recalculated series. Recalculated time series for all subindices, as well as a calculator for revaluating indexed amounts from lease contracts, can be found in an Excel document on the building cost index webpage.

In the last twelve months the BCI has increased by 5.7%.