Inflation is defined as an ongoing increase in the general price level and is most often measured as the twelve-month change in the consumer price index (CPI), which measures the average price of goods and services in the market. Inflation entails a decline in the value of money; that is, each króna buys a smaller amount of goods and services. Statistics Iceland measures the CPI, based on regular surveys of household expenditures nationwide.
What is inflation?
How is the CPI measured?