Closer scrutiny of housing market prices shows that the price of multi-family homes in the capital area fell the most, or by 0.5%. Housing in regional Iceland rose in price by 0.2%, while single-family homes in greater Reykjavík fell by 0.3%.
The YoY increase in house prices gained pace slightly between months and now measures 2.3%. House prices in regional Iceland have risen the most in the past year, or by 5.4%. Next in line are capital area condominium prices, which have increased by 1.8% in the past year, whereas detached home prices in the capital area have fallen by 0.7% over the same period.
Most components contribute to the rise in the CPI
Apart from housing, the main driver of inflation in September is the clothing and footwear component, which increased by 3.7% (0.14%), owing to the end of seasonal sales. a combined Clothing and footwear prices have now risen by 9.6% in August and September, the typical end-of-sale period.
Food and beverages rose in price as well, by 0.5% (0.07%), although food price inflation has slowed markedly in recent months, driven by smaller price hikes abroad and, not least, by a stronger ISK. The recreation and culture component rose by 0.7% (0.07%), mainly because of an increase in fees charged for participation in sports and recreational activities.
Furthermore, other goods and services increased in price by 0.5% (0.03%), chiefly because of fees charged by pre-schools and private childcare providers, which commonly rise in the autumn.