Newly published figures by Statistics Iceland shows that purchasing power grew by 4.4% between 2013 and 2014. Purchasing power has not grown as much since 2007.
Read more: Labour shortage looming in the tourism and construction industries in Iceland
The largest factor explaining rising purchasing power are wages, which rose by 6.6% in 2014. Income from property and government transfers increased as well. When everything is counted disposable family income grew by 7.7% in 2014. When inflation has been factored in purchasing power grew by 4.4%.
Lower inflation: Only 1.9%
New inflation statistics published by Statistics Iceland show that despite rising wages and a booming economy the consumer price index actually fell between August and September. The consumer price index dropped by 0.39% in September.
Year-on-year inflation has also dropped, measuring 1.9% in September, compared to 2.2% in August. Over the past year inflation has remained below 2% on a 12 month basis, except for last August. A key factor behind falling inflation in September is the drop in oil prices and lower airfares, caused by increasing competition at Keflavík international airport.
The main driver of inflation over the past 12 months, however, are housing costs. Statistics Iceland points out that consumer prices, discounting housing costs, fell by 0.5% over the past 12 months.
Read more: The rent is too damn high: increased by 40% since 2011
Newly published figures by Statistics Iceland shows that purchasing power grew by 4.4% between 2013 and 2014. Purchasing power has not grown as much since 2007.
Read more: Labour shortage looming in the tourism and construction industries in Iceland
The largest factor explaining rising purchasing power are wages, which rose by 6.6% in 2014. Income from property and government transfers increased as well. When everything is counted disposable family income grew by 7.7% in 2014. When inflation has been factored in purchasing power grew by 4.4%.
Lower inflation: Only 1.9%
New inflation statistics published by Statistics Iceland show that despite rising wages and a booming economy the consumer price index actually fell between August and September. The consumer price index dropped by 0.39% in September.
Year-on-year inflation has also dropped, measuring 1.9% in September, compared to 2.2% in August. Over the past year inflation has remained below 2% on a 12 month basis, except for last August. A key factor behind falling inflation in September is the drop in oil prices and lower airfares, caused by increasing competition at Keflavík international airport.
The main driver of inflation over the past 12 months, however, are housing costs. Statistics Iceland points out that consumer prices, discounting housing costs, fell by 0.5% over the past 12 months.
Read more: The rent is too damn high: increased by 40% since 2011
