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ECONOMY

Danish inflation outpaces EU average

Inflation in Denmark is at an historic low but still higher than the European average, new figures from Statistics Denmark have revealed.

Danish inflation outpaces EU average
Photo: Colourbox
Consumer prices rose by just 0.4 percent in June compared to the year before, which is well below the normal increase of one to percent each year, Berlingske Business reported on Tuesday. 
 
But even though prices are relatively stable for Danish consumers, Denmark’s rate of inflation is still higher than the cumulative average of all other EU countries. The 28 EU nations have had an average inflation rate of 0.1 percent and prices in the 19 eurozone countries have increased by 0.2 percent. 
 
According to figures from Statistics Denmark, Norway has seen the highest inflation at 2.6 percent while Cyprus has had a price deflation of 2.1 percent. 
 
Earlier this year, economists were worried that Denmark might slip into a recession after consumer prices fell in January for the first time in 60 years. The drop proved short-lived however, as the national price of goods and services increased 0.2 percent in February 2015 compared to the same month last year. 
 
2015 has been seen by economic prognosticators as the year that Denmark will finally shake off the effects of the financial crisis. The Confederation of Danish Industry (DI) released an economic prognosis earlier this year that called for “significantly better developments” through to 2016.  
 
“This year and next year, the outlook is for more normal growth rates in the Danish economy at about 1.5 percent. With that, we expect significantly better developments that we have had in a long time,” DI’s prognosis stated.
 
“There is a tailwind for consumer spending from all directions at the outset of the present year. Real wages are strongly increasing as a result of falling consumer prices, employment continues to increase and interest rates are at all-time lows,” the report added. 

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SAS

‘We agree to disagree’: Still no progress in marathon SAS strike talks

By lunchtime on Friday, talks between the Scandinavian airline SAS and unions representing striking pilots were still stuck on "difficult issues".

'We agree to disagree': Still no progress in marathon SAS strike talks

“We agree that we disagree,” Roger Klokset, from the Norwegian pilots’ union, said at lunchtime outside the headquarters of the Confederation of Swedish Enterprise in Stockholm, where talks are taking place. “We are still working to find a solution, and so long as there is still some point in continuing negotiations, we will do that.” 

Mats Ruland, a mediator for the Norwegian government, said that there were “still several difficult issues which need to be solved”. 

At 1pm on Friday, the two sides took a short break from the talks for lunch, after starting at 9am. On Thursday, they negotiated for 15 hours, breaking off at 1am on Friday morning. 

READ ALSO: What’s the latest on the SAS plane strike?

Marianne Hernæs, SAS’s negotiator on Friday told journalists she was tired after sitting at the negotiating table long into the night. 

“We need to find a model where we can meet in the middle and which can ensure that we pull in the income that we are dependent on,” she said. 

Klokset said that there was “a good atmosphere” in the talks, and that the unions were sticking together to represent their members.

“I think we’ve been extremely flexible so far. It’s ‘out of this world’,’ said Henrik Thyregod, with the Danish pilots’ union. 

“This could have been solved back in December if SAS had not made unreasonable demands on the pilots,” Klokset added. 

The strike, which is now in its 12th day, has cost SAS up to 130m kronor a day, with 2,550 flights cancelled by Thursday, affecting 270,000 passengers. 

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