Danish inflation outpaces EU average
The Local Denmark - [email protected]
Published: 22 Jul, 2015 CET.
Updated: Wed 22 Jul 2015 08:45 CET
Inflation in Denmark is at an historic low but still higher than the European average, new figures from Statistics Denmark have revealed.
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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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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