The CPI based on prices in April 2009 is 336.0 points (May 1988=100), 0.45% higher than in the previous month. The CPI less housing cost is 311.6 points, 0.84% higher than in March.
Prices of petrol and diesel oil rose by 8.2% (effect on the index 0.33%) and prices of clothing and footwear increased by 3.2% (0.19%).
Cost for owner occupied housing declined 1.6% (-0.23%). Thereof the effect of lower market prices was -0.19% and of lower real interest rates -0.04%. Prices of food and beverages fell by 0.7% (-0.10%).
The CPI in April 2009 is 11.9% higher than in April 2008 while the CPI less housing cost is 15.6% higher than one year ago. Over the last three months, the CPI has increased 0.4%, equivalent to an annual inflation rate of 1.4% (9.4% for the CPI less housing cost).
The CPI compiled in the middle of April 2009, 336.0 points, is applicable for indexation purposes in June 2009. The old credit terms index for June 2009 is 6,634 points.
The consumer price index is now published on a new base, March 2009. The rebasing of the index is primarily built on Statistics Iceland’s household expenditure survey 2005–2007. Exceptions are made in cases where more recent information, from reliable sources, is available. These sources include data on new car registrations, data from providers of international flights and package holidays and data on VAT turnover in the retail market. The outlet weights used in the calculation of price changes of groceries in the CPI have been changed based on 2008 data. Changes in buying pattern resulted 0.12% lowering of the index in April. It should be pointed out that the rebasing of the index does othervise not have any price effects on the CPI. Expenditure shares according to the new and old base in March 2009 can be found here.
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 12 May 2009.
(Statistics Iceland)
Consumer price index in May 2009
The CPI based on prices in May 2009 is 339.8 points (May 1988=100), 1,13% higher than in the previous month. The CPI less housing cost is 316.1 points, 1.44% higher than in April.
Prices of petrol and diesel oil rose by 4.9% (effect on the index 0.22%) and prices of cars increased by 4.9% (0.17%).
Cost for owner occupied housing increased by 1.0% (0.14%). Thereof the effect of higher market prices was 0.18% and of lower real interest rates -0.04%. Prices of food and beverages rose by 0.8% (0.11%). Price of international air fares rose by 22.6% (0.17%).
The CPI in May 2009 is 11.6% higher than in May 2008 while the CPI less housing cost is 15.5% higher than one year ago. Over the last three months, the CPI has increased 0.98%, equivalent to an annual inflation rate of 4.0% (10.2% for the CPI less housing cost).
The CPI compiled in the middle of May 2009, 339.8 points, is applicable for indexation purposes in July 2009. The old credit terms index for July 2009 is 6,709 points.
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Depreciation of the Krona knows, clearly, a consequence: inflation fight is very difficult. (159-170 against Euro, April /// 169-178 against Euro, May) . Therefore, next cut of policy rate would be null or minimum; perhaps, 50bp until 12.5% ( 12.5%-13%). It is essential to maintain the Krona; relaxation, smoothly!!!
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