The Consumer Price Index (CPI) based on prices in January 2015 is 419.3 points (May 1988=100), 0.71% lower than in December 2014. The CPI less housing cost is 389.2 points, 1.29% lower than in December.
Winter sales led to a 15.2% decrease in prices of clothing and footwear (effect on index -0.72%), prices of furnishing, household equipment etc. decreased by 4.9% (-0.22%) and prices of petrol and diesel oil decreased by 11.0% (-0.42%). Prices of food and non-alcoholic beverages rose by 2.6% (0.38%) and cost of owner occupied housing (imputed rent) rose by 1.3% (0.19%).
The CPI is 0,8% higher in January 2015 than in January 2014 while the CPI less housing cost is 0.6% lower than one year ago. Over the last three months, the CPI has decreased by 0.9%, equivalent to an annual deflation rate of 3.6% (6.5% annual deflation rate for the CPI less housing cost).
On January 1 tax changes took effect. General excise taxes and specific tax on sugar were abolished and upper level VAT rate decreased from 25.5% to 24.0% while the lower VAT rate (e.g. on food) increased from 7% to 11%. The effect of these changes on the CPI cannot be estimated separately, however it can be pointed out that the constant tax rate CPI decreased by 1.12% from the previous month. There the VAT, specific taxes on Alcohol, tobacco and fuels are kept at the December 2014 rate. Price changes due to the abolished excise taxes cannot be distinguished from other price changes in the CPI.
The CPI compiled in the middle of January 2015, 419.3 points, is applicable for indexation purposes in March 2015. The old credit terms index for March 2015 is 8,279 points.
| Consumer price index by economic categories 2015 | ||||
| Subindices March 1997=100 | Change in the last 12 months | |||
| Effect on the index | ||||
| December | January | % | ||
| Consumer Price Index | 236.6 | 234.9 | 0.8 | 0.8 |
| Thereof: | ||||
| Domestic goods and vegetables | 211.6 | 217.7 | 1.8 | 0.2 |
| Agricultural products | 197.0 | 205.3 | 1.1 | 0.1 |
| Domestic goods less agricultural products | 222.8 | 226.3 | 2.4 | 0.2 |
| Imported goods | 197.4 | 188.3 | -5.0 | -1.7 |
| Imported goods less, alcohol and tobacco | 188.2 | 178.7 | -5.6 | -1.7 |
| Groceries (perishable items) | 208.5 | 213.3 | 0.8 | 0.1 |
| The Icelandic consumer price index 2014-2015 | ||||||
| May 1988 = 100 | Annualized rates | |||||
| Monthly index | Monthly changes | Latest month | Latest 3 months | Latest 6 months | Latest 12 months | |
| 2014 | ||||||
| January | 415.9 | -0.7 | -8.3 | 0.7 | 1.7 | 3.1 |
| February | 418.7 | 0.7 | 8.4 | 1.9 | 2.4 | 2.1 |
| March | 419.7 | 0.2 | 2.9 | 0.8 | 2.2 | 2.2 |
| April | 421.0 | 0.3 | 3.8 | 5.0 | 2.8 | 2.3 |
| May | 421.3 | 0.1 | 0.9 | 2.5 | 2.2 | 2.4 |
| June | 422.8 | 0.4 | 4.4 | 3.0 | 1.9 | 2.2 |
| July | 422.1 | -0.2 | -2.0 | 1.0 | 3.0 | 2.4 |
| August | 423.1 | 0.2 | 2.9 | 1.7 | 2.1 | 2.2 |
| September | 422.6 | -0.1 | -1.4 | -0.2 | 1.4 | 1.8 |
| October | 423.2 | 0.1 | 1.7 | 1.0 | 1.0 | 1.9 |
| November | 421.0 | -0.5 | -6.1 | -2.0 | -0.1 | 1.0 |
| December | 422.3 | 0.3 | 3.8 | -0.3 | -0.2 | 0.8 |
| 2014 | ||||||
| January | 419.3 | -0.7 | -8.2 | -3.6 | -1.3 | 0.8 |