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MONEY

How do price increases in Denmark compare with other EU countries?

Denmark’s inflation in February was the highest the country has seen for a number of years, but compares favourably with price increases seen in most other EU countries.

shopping in denmark
Denmark is seeing record consumer inflation but price rises still compare favourably to other EU countries. File photo: Maria Albrechtsen Mortensen/Ritzau Scanpix

Inflation in Denmark last month was 5.3 percent, according to Statistics Denmark.

However, that represents less drastic price increases compared with other EU countries, according to the agency.

Data released by Statistics Denmark shows inflation of consumer prices for EU countries. The figures are calculated on a comparable basis between countries.

Of the 27 EU countries only Malta, France, Finland, Sweden and Portugal experienced lower inflation than Denmark with regard to consumer prices in February.

In Malta and France, inflation was 4.2 percent in February, while for the other countries it was 4.4 percent.

Particularly high inflation was recorded in the Baltic countries. Lithuania had the highest inflation in the EU at 14 percent, while neighbouring Estonia and Latvia had 11.6 and 8.8 percent inflation respectively.

“Inflation is at a towering level. But price increases in Denmark are among the lowest in the EU,” senior economist Allan Sørensen of the Confederation of Danish Industry (DI) told news wire Ritzau.

“There is, as such, a global problem with high price increases. It is reducing the purchasing power of consumers all over the world,” he said.

The average inflation for the EU27 countries in February was 6.2 percent. In January it was 5.6 percent.

Energy is the main factor driving up prices across the EU. This is also the case in Denmark, which has seen energy increase in cost more than any other consumer good or service over the last year.

Prices will continue to go up in the immediate future before stability returns, according to Sørensen.

“Inflation will increase further during the spring as the latest increases in the cost of raw materials pass through the value chain,” he said.

“Many raw material prices have come down again a little in the last week and that can hopefully soon cause inflation to decline again significantly,” he said.

READ ALSO: Danish prices in ‘biggest jump since 2008’

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MONEY

Danish supermarket chains introduce price limits on selected products

Danish company Salling, which owns three supermarket chains, will place a limit on the price of selected products until later this year in response to inflation.

Danish supermarket chains introduce price limits on selected products

The high current prices of energy and many daily items for customers, caused by inflation, are behind Salling’s decision to introduce a price limit on some of its products, the company said in a statement on Tuesday.

Salling owns the Netto, Bilka and Føtex supermarket chains in Denmark. The prize freezes will apply at all three.

The limits, which will be in place until October, will be applied to “basic daily and food items”, according to Salling. Netto stores will see price limits applied to 100 products, while the larger Føtex and Bilka stores will have 200 products included.

Own-brand Salling products are likely to form the bulk of the lists, but the specific products were not named by the company.

The prices of the selected products “will not increase before October 28th despite ongoing, increasing inflation,” Salling said.

Although Salling expects inflation to continue, it said it wanted to give customers the option of preventing their spending on groceries from increasing by enabling them to choose products that have not gone up in price.

“We will make it easy for customers to navigate the products by communicationg prices clearly in our stores using signs and markings on shelves,” Salling CEO Per Bank said in the statement.

The move was described by Salling in the statement as an “investment” in light of expected higher costs at suppliers.

“It is just a year since Danes bought luxury items and flocked to supermarkets as a result of corona lockdowns and with extra holiday money in their pockets. Today, customers navigate by special offers and own brands as an alternative to name brands in Salling’s shops and stores,” the company said.

The company will announce on November 1st whether it will extend the limitation period, it said.

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