neysluverðskrá

neysluverðskrá is an Icelandic term that translates to "consumer price index" in English. It is a statistical measure used to track the average change over time in the prices paid by consumers for a basket of goods and services. This basket typically includes items such as food, housing, transportation, clothing, and healthcare, representing a significant portion of household expenditures.

The primary purpose of the neysluverðskrá is to measure inflation, which is the rate at which the general level of prices for goods and services is rising. By monitoring the changes in the neysluverðskrá, economists and policymakers can assess the health of the economy and make informed decisions regarding monetary and fiscal policy. For instance, a rising neysluverðskrá indicates inflation, which might prompt a central bank to raise interest rates to cool down the economy. Conversely, a falling or stagnant neysluverðskrá could suggest deflationary pressures, potentially leading to interest rate cuts.

The calculation of the neysluverðskrá is undertaken by national statistical agencies. In Iceland, Statistics Iceland is responsible for compiling and publishing this index. They collect price data from a wide range of sources across the country and use specific methodologies to ensure the index accurately reflects consumer spending patterns. The neysluverðskrá is usually reported on a monthly basis and is a key indicator used in wage negotiations, for adjusting pensions, and for indexing various contracts and benefits.