The expected rapid decrease in Iceland’s high rate of consumer price inflation appears to be continuing.

After peaking in January at a year-on-year rate of 18.6 percent, it reduced to 17.6 percent in February and 15.2 percent this month.

The rate is 19.4 percent with housing excluded.

“The CPI based on prices in March 2009 is 334.5 points (May 1988=100), 0.59 percent lower than in the previous month. The CPI less housing cost is 309.0 points, 0.16 percent higher than in February,” a statement from statistics Iceland says.

Statistics Iceland registered a 5.1 percent decline in the cost of owner occupied housing over the last month (which brings the overall monthly index down by 0.76 percent).

The cost of petrol and diesel has gone down by 3.1 percent since February, international air fares became 8.3 percent cheaper and food and drink costs went down by 0.9 percent.

However, the end of the winter sales did cause a month-on-month increase in clothing and shoe prices of 5.5 percent.

Statistics Iceland says in its press statement that, “In the past weeks’ debate about the current economic situation in Iceland, some miscomprehensions about the CPI price measurement have emerged. To meet users need for better understanding and knowledge in this field, Statistics Iceland now publishes a web page with some frequently asked questions (FAQ) about the CPI and short answers to them.”

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