Household gross disposable income is estimated to have increased by 8.5% in the first quarter of 2023, compared with last year‘s corresponding quarter. Disposable income per capita amounted to little over 1.26 million ISK in the quarter and is estimated to have increased by 4.7% compared with the first quarter of 2022. Due to increased inflation rate, the purchasing power of household disposable income per capita in the first quarter of 2023 decreased by 4.8% compared with last year’s corresponding quarter, but the consumer price index increased by 10% during the same period.
The total income of the household sector increased by 11.5% in the first quarter of 2023 compared with the first quarter of the previous year. The largest increase was in wages and salaries which are estimated to have increased by 13.4% from last year’s corresponding quarter. It is estimated that property income increased by 12% during the same period, but income from interests increased by 61.8%.
Social benefits, covering social benefits and pensions paid, increased by 6.6% in the quarter. The largest change was in pensions which increased by 18.3%.
Total expenditure of the household sector increased by 15.5% in the first quarter of 2023 compared with the first quarter of the previous year. Taxes on income are estimated to have increased by 7.7% and net social contributions increased by 14.3% from last year’s corresponding quarter.
Property expenditure is estimated to have increased by 58% in the first quarter of 2023 compared with last year’s corresponding quarter where interest payments increased by 60% during the same period which can largely be attributed to the increase in the level of interest rates.
These are preliminary figures and thus Statistics Iceland will publish revised figures when exhaustive information is available, e.g. tax returns from corporations and individuals.