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MONEY

Danish prices in ‘biggest jump since 2008’

The price of everyday goods in Denmark increased by 4.2 percent over the 12 months prior to January this year, the largest hike in a one-year period since 2008.

A Danish shopping basket
A Danish shopping basket costs considerably more than it did a year ago. File photo: Thomas Lekfeldt/Ritzau Scanpix

The measure from agency Statistics Denmark shows inflation is at its highest since 2008, when prices in Denmark went up by 4.4 percent over a year during the Global Financial Crisis.

Prior to 2008, the largest 12-month value for inflation was in 1989.

Energy price increases are the biggest culprit for the high level of inflation in 2022.

Electricity, petrol and gas have all become more expensive over the last year and account for 2.4 percent of the overall inflation.

However, very few categories of goods have become cheaper during the last 12 months. According to Statistics Denmark’s consumer index, alcohol, tobacco, clothing and communication are the only product groups to have gone down in price, having a negative effect on the overall inflation rate.

A family in Denmark with two adults and two children must pay 18,600 kroner more for the same goods and services in 2022 compared to the beginning of 2021, an analyst said.

“Inflation is hurting Danish people’s wallets. Inflation has accelerated in recent months and prices have taken a noticeable jump upwards,” Niklas Praefke, senior economist with trade union Ledernes Hovedorganisation, told news wire Ritzau.

“That means we need to get more money out of our pockets when we are shopping and when we pay electricity and heating bills,” he added in a written comment.

The economist said he expected inflation to remain above 3 percent in the coming months.

It is, however, expected to eventually fall off as energy prices are unlikely to continue to drive inflation upwards.

“The drop (in inflation) will probably not be very big because the large shortage of both labour and materials will continue to put pressure on companies’ overheads,” Praefke said.

“Overall, I expect inflation in a year’s time will be lower than it is today,” he said.

READ ALSO: Denmark could give tax-free sum to families with high heating bills

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ENERGY

Denmark and three other EU nations want to increase North Sea wind power tenfold by 2050

EU members Germany, Denmark, the Netherlands and Belgium on Wednesday said they wanted to increase their North Sea wind power capacity tenfold by 2050 to help the bloc achieve its climate goals and avoid Russian hydrocarbons.

Denmark and three other EU nations want to increase North Sea wind power tenfold by 2050

Danish Prime Minister Mette Frederiksen said the plan would mean the four countries would “deliver more than half of all offshore wind needed to reach climate neutrality in the European Union”.

The increase would make the North Sea “the green power plant of Europe”, she told a news conference in the port of Esbjerg in western Denmark.

“Setting a vision is not enough, we will make it happen,” Frederiksen added, flanked by German Chancellor Olaf Scholz, EU chief Ursula von der Leyen, Dutch premier Mark Rutte and Belgian leader Alexander De Croo.

The countries’ goal is to raise wind power capacity fourfold to 65 gigawatts by 2030 and then tenfold to almost 150 gigawatts by 2050.

They said 150 gigawatts of offshore wind power would supply 230 million homes with electricity.

Such a capacity would amount to 15,000-20,000 wind turbines, based on the most powerful ones currently on the market.

The announcement comes as the European Commission presented a plan to accelerate the development of renewable energy worth 210 billion euros ($220 billion) to reduce the bloc’s dependence on Russian gas as quickly as possible.

The European Union has already said it will end imports of Russian coal by August.

An embargo on Russian oil as part of a sixth sanctions package against Moscow for its invasion of Ukraine is proving more contentious after Hungary raised objections.

The commission has said it wants to reduce purchases of Russian gas by two-thirds this year and completely before 2030.

On Wednesday it proposed to increase the proportion of renewable energies in the bloc’s energy mix from 40 percent to 45 percent by 2030.

The 27-nation EU aims to reduce greenhouse gas emissions by at least 55 percent by 2030 and achieve carbon neutrality by 2050.

READ ALSO: Danish offshore wind could help Europe ditch fossil fuels

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