Statistics Iceland is currently preparing two fundamental improvements in the BCI methodology, which will be introduced in the monthly compilation of the index in January 2022.

First, the Building Cost Index will be compiled from prices excluding VAT. Hence, the practice to compile price changes from input prices including VAT will be discontinued. Second, a new data source for measuring labour cost in construction will be introduced. The new data source is the Icelandic survey on wages, earnings and labour costs (ISWEL).

The implementation of this new methodology will not in itself affect price changes in the index.

Going forward, the publication of the BCI time series will be exclusively disseminated with respect to reference month, whereas the publication with respect to application month will be discontinued. This is due to the repeal of the Act on the Building Cost Index (42/1987) which will enter into force on 1 January 2022.

Statistics Iceland first announced the upcoming changes in a news release on 20 May 2021. On 11 May 2021, the Icelandic Parliament, Althingi, passed a law (43/2021) to repeal the current Act on the Building Cost Index (42/1987). Thereafter the Act on Statistics Iceland and official statistics (163/2007) will govern the compilation of the BCI.

Statistics Iceland invites users of the index, who wish to learn more about the upcoming changes in advance, to register by sending an email to stating name of contact, name of company/business, telephone-number and email address in order to receive further information.