Verðbólguvísitala

Verðbólguvísitala, also known as the Consumer Price Index (CPI) in English, is a statistical measure used to track the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a key indicator of inflation, which is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

The calculation of the verðbólguvísitala involves collecting prices for a wide range of items, including food, housing, transportation, medical care, education, and recreation. These items are weighted according to their importance in the average household budget. When the prices of these items increase, the index rises, indicating inflation. Conversely, if prices fall, the index decreases, indicating deflation.

Governments and central banks use the verðbólguvísitala for various purposes. It helps in formulating economic policies, adjusting wages and salaries, and indexing social security benefits and pensions to maintain their real value. For individuals and businesses, it provides insights into the cost of living and helps in making informed financial decisions. Different countries have their own statistical agencies responsible for calculating and publishing their respective verðbólguvísitala.