raunverðir

Raunverðir is an Icelandic term that translates to "real values" or "actual prices." It is primarily used in economic contexts to distinguish between nominal and real values. Nominal values, often referred to as seðilverð or "note values," represent prices or incomes at their current face value without accounting for inflation. In contrast, raunverðir adjust these nominal figures for changes in the general price level, providing a more accurate reflection of purchasing power over time.

The calculation of raunverðir typically involves using a price index, such as the consumer price index (Vísitala neysluverðs), to deflate nominal values. For example, when comparing wages or economic output from different years, using raunverðir allows for a meaningful assessment of changes in living standards or economic growth, as it removes the distortion caused by inflation. Without this adjustment, nominal figures might suggest an increase in value that is simply a result of rising prices rather than a genuine improvement in economic conditions. Therefore, raunverðir are crucial for accurate economic analysis and policy-making.