Calculation of the Icelandic Consumer Price Index
The CPI is calculated every month by Statistics Iceland. The CPI is calculated monthly based on prices collected for at least one week time in the middle of a month. The CPI is applied for many purposes. It is therefore vitally important that its foundation should be as strong as possible. The CPI is based on a collection of data on all kinds of household expenditure, covering not only everyday purchases of food, toilet articles, clothing, etc., but also the cost of electricity, space heating, telephones, running private cars, transport and recreation. The base thus reflects more or less all kinds of expenditure relating to a household and the everyday life of people in general.
The CPI is used for indexation purposes and applied for indexation in the second month following the calculation. For example the CPI calculated in May is used for indexation in July.