The CPI based on prices in April 2008 is 300.3 points (May 1988=100), 3.41% higher than in the previous month. The CPI less housing cost is 269.6 points, 4.21% higher than in March.

The depreciation of the Krona has generated large increase of the price level as prices of imported goods increased 6.2% (effect on the index 2.1%).

Prices connected to use of private car increased 7.1% (1.14%). Thereof prices of new cars rose by 11.0% (0.77%) and of petrol and diesel oil 5.2% (0.24%).

Prices of food and beverages rose by 6.4% (0.77%), thereof prices of milk and other milk products rose by 10.2% (0.20%).

The CPI in April 2008 is 11.8% higher than in April 2007 while the CPI less housing cost is 10.6% higher than one year ago. Over the last three months, the CPI has increased 6.4%, equivalent to an annual inflation rate of 28% (33.1% for the CPI less housing cost). 

This monthly inflation rate for the CPI is the highest since July 1988 when it rose 3.5% and for the CPI less housing cost the highest since January 1985 when the index increased 4.8%. The annual inflation rate is the highest since in September 1990.
      
The CPI compiled at the middle of April, 300.3 points, is applicable for indexation purposes in June 2008. The old credit terms index for June 2008 is 5,929 points.

The consumer price index is rebased in April every year and is now based on the continuous household expenditure survey of Statistics Iceland for the years 2004–2006. An annual rebasing does not lead to any significant changes in the division of weights from one year to the next. Furthermore, it should be pointed out that the rebasing of the index does not as such have any price effects on the CPI.

The changes of the index in the previous year will be further outlined in a separate issue of the Statistical Series to be published on 16 May 2008.