The Icelandic consumer price index (CPI) is rebased in April every year. In the new issue of the Statistical Series the development of the consumer price index in the period April 2005–2006 is described.

At the time of rebasing the methods and practices for price collection and compilation are generally reconsidered. In April 2006, two main changes were undertaken. First, the compilation methods and price collection of international air fares have been improved moving over to price collection on the web. Second, the methods used to calculate the house price index in the user cost model for owner occupied housing have also been improved with the aim to better allow for quality changes in the housing market. One of the main changes is that the house price index is now calculated as a superlative index (Fischer).

Changes are planned for the temporal coverage of the index. Prices will be collected for at least one week during the middle of the month instead of the first two days of the month. This change will be implemented in January 2008.  The main reason for this change is the EU Council regulation (No. 6998/06) which establishes minimum standards for the price collection period in the Harmonised index of consumer prices (HICP).

Consumer price index April 2005–2006 - Statistical Series