neysluverðsvísitölunni

The neyslúverðsvísitalan, often translated as the "consumer price index" in English, is a key economic indicator in Iceland. It measures the average change over time in the prices paid by consumers for a basket of goods and services. This basket is representative of typical household spending patterns and includes items such as food, housing, transportation, clothing, and recreation. The Central Bank of Iceland and Statistics Iceland are the primary bodies responsible for its calculation and publication.

The neyslúverðsvísitalan serves several crucial purposes. Firstly, it is the main measure of inflation in the Icelandic economy. By tracking the index over time, economists and policymakers can understand the rate at which prices are rising or falling. This information is vital for monetary policy decisions, as central banks often use inflation targets to guide interest rate adjustments. Secondly, the index is widely used for wage indexation and in the adjustment of various contracts and benefits. Many agreements, including collective bargaining agreements for wages and rent contracts, are tied to changes in the neyslúverðsvísitalan to maintain purchasing power. It also influences the value of pensions, social security benefits, and tax brackets. The methodology for calculating the index involves regular surveys of prices across a wide range of retail outlets and service providers throughout the country.