Household gross disposable income increased by 8% in the third quarter of 2023 compared with last year‘s corresponding quarter according to preliminary figures. Disposable income per capita amounted to little over 1.3 million ISK in the quarter and is estimated to have increased by 4.8% compared with the third quarter of 2022.
Due to increased inflation rate and population growth, the purchasing power of household disposable income per capita in the first quarter of 2023 decreased by 2.7% compared with last year’s corresponding quarter. Meanwhile, the consumer price index increased by 7.8% and population grew by 3% during the same period.
The total income of the household sector increased by 13.1% in the third quarter of 2023 compared with the third quarter of the 2022. The largest increase was in wages and salaries which increased by 10.9%. Property income increased by 18.2% during the same period, income from interests increased by 47.4% and social benefits, covering social benefits and pensions paid, by 11.5%.
Total expenditure of the household sector increased by 19.7% in the third quarter of 2023 compared with the third quarter of 2022. Taxes on income increased by 12.3% and net social contributions increased by 7.7% from last year’s corresponding quarter. Property expenditure is estimated to have increased by 39.4% in the third quarter of 2023 compared with last year’s corresponding quarter where interest payments increased by 40.8%. This increase in interest payments is not as high as in previous quarters which can be contributed somewhat to the fact that in the third quarter of 2022, interest level was starting to rise.
Please note that these are preliminary figures. Statistics Iceland will publish revised figures when exhaustive information will be available, e.g. tax returns from corporations and individuals. Published figures for the years 2015-2021 released last October have been adjusted. The Quarterly sector accounts table now aligns with the Yearly sector accounts table.