Iceland's building cost index (BCI) saw a month-on-month increase of 3.3 percent in July 2015, according to data published by Statistic Iceland on Monday.

Figures showed the BCI reading in the middle of July was 127.9, taking the BCI in December 2009 as base number of 100, increasing by 3.3 percent compared with 123.8 in June.

The increase was mainly contributed by an 11.2 percent rise in labor cost between months following the recent agreement of new wage contracts for craftspeople and labor workers in construction.

In the last 12 months, the BCI has increased by 6.0 percent.