Danish inflation stays at 10 percent, disappointing economists

Economists in Denmark say they are disappointed at latest inflation figures, which show prices remain 10 percent higher than they were a year ago.

Danish inflation stays at 10 percent, disappointing economists
Low-price supermarket in Aarhus. Inflation remains over 10 percent in Denmark. Photo: Bo Amstrup/Ritzau Scanpix

Data from Statistics Denmark show that consumer prices in October 2022 were 10.1 percent higher than the same period in 2021.

The inflation rate is unchanged from September, when it was also 10 percent, meaning prices are still increasing at the steepest rate observed since November 1982.

Higher prices for consumers of electricity, food, gas and fuel are the main causes of the high overall inflation.

Jeppe Juuul Borre, chief economist at Arbejdernes Landsbank, told news wire Ritzau the new data is “terrible” news.

“We had certainly hoped for a decrease and an easing of inflation in today’s figures. The sharp price increases are gnawing their way through Danes’ household budgets at the highest rate in 40 years,” he wrote in a comment. 

READ ALSO: EXPLAINED: What’s causing the highest inflation rate in Denmark for almost 40 years?

An ‘average’ family would incur additional costs of 45,000 kroner on their annual budget if the bought the same items in line with the price increases, Borre told Ritzau.

“That is extremely painful for many Danes and will unavoidably affect private budgets,” he said.

A current lull in electricity prices has failed to have an impact on inflation, the senior economist with the Danish Chamber of Commerce, Tore Stramer, told Ritzau.

But Stramer said that inflation may have now reached its highest level.

“We expect a significant fall in inflation towards the turn of the year and into 2023, where inflation will again reach a normal level of 2 percent,” he said.

“If energy prices don’t rise again over the winter, the fall in inflation could even be quite strong,” he said.

The inflation rate for September 2021 – just over one year ago – was 2.2 percent.

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Danish cafe fined 40,000 kroner for refusing cash

A café in Copenhagen must pay a hefty fine after refusing to accept cash payments from customers.

Danish cafe fined 40,000 kroner for refusing cash

The café, Original Coffee, refused for four months to accept cash, broadcaster DR writes.

Copenhagen City Court rules on Friday that it thereby was in breach of rules protecting the use of cash under Danish law.

The state ombudsman for consumers filed a report against the café with police. It was found to have broken the law and must therefore pay a 40,000-krone penalty.

Under Danish law, businesses must accept cash between 6am and 10pm unless the transaction is remote – for example online – or at an unstaffed outlet such as a self-service petrol station.

The café said it had chosen not to accept cash because of the Covid-19 pandemic as well as a lack of change and the risk of break-ins. It reintroduced cash payments on February 1st this year.

It is unclear whether the business will appeal against the decision.

READ ALSO: Denmark will eventually be cash-free: expert