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Danish stores expect prices to fall 'in the next few months'

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Ritzau/The Local - [email protected]
Danish stores expect prices to fall 'in the next few months'
Many Danish food retailers expect prices to fall soon after a long period of inflation. Illustration photo: Ida Marie Odgaard/Ritzau Scanpix

Expectations on lower prices for consumers are rising at Danish businesses according to new data released on Friday.

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A long period of rising prices due to inflation is expected to finally turn in the “coming months”, a new report published by Statistics Denmark stated on Friday.

In a survey conducted by the agency, 54 percent of food, drink and tobacco retail businesses said they expect prices to fall during the next three months.

That is more than the preceding survey in June, when 45 percent had the same expectations.

“it is marvellous news for consumers that grocery stores expect lower prices,” Danish Chamber of Commerce senior economist Kristian Skriver said in a statement.

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“It strongly underlines that the hard months with runaway price increases are slipping into the background,” he said.

Several food retailers have already announced price reductions on specified items this month.

But it remains uncertain as to whether the expectations of lower prices will take hold in practice.

Price trends for the category “food and non-alcoholic drinks” show a stable, high level over recent months.

But expectations that the prices will fall began to gather pace in June and have been reinforced in July.

“The outlook for price decreases comes after a period with very steep price rises which have squeezed budgets at Danish homes,” Arbejdernes Landsbank senior economist Jeppe Juul Borre said in a comment.

Borre also called the survey results from retailers “good news”.

As recently as April, nearly two-thirds – 63 percent – of companies expected prices to increase in the intermediate future. That figure is as low as 3 percent in the latest survey.

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