Denmark has the lowest inflation in the EU
Inflation is lower in Denmark than in any other EU country, according to new data from national agency Statistics Denmark.
The statistics agency published on Friday its latest EU-harmonised consumer price index. The figures show an annual inflation of 2.3 percent in Denmark, which represents a fall from 3.2 percent in July.
Both figures are well below the latest figure for inflation across the EU, which is 5.9 percent.
That makes Denmark “the European champions of low inflation,” according to Allan Sørensen, the senior economist with the Confederation of Danish Industry (DI).
“Inflation is slowly moving downwards all across Europe. But there is currently no one who can welcome such low inflation as Danes. Inflation in the eurozone is more than five percent,” Sørensen said in a written comment.
While the inflation index shows a positive trend in Denmark, the opposite is true for Hungary, which has inflation of 14.2 percent.
The price of gas and summer house rentals are helping to bring the country’s EU-comparable inflation rate down.
Economist in Denmark say there is still work to do to reduce core inflation, a measure that does not take into account energy and unprocessed food prices and demonstrates the presence of inflation in other parts of the economy.
Core inflation in Denmark was 4.6 percent in August and 5.7 in July.
The reduction in this metric is also “positive”, economist Brian Friis Helmer of Arbejdernes Landsbank said.
But he added in a written comment that core inflation “can still be found at a much-too-high level”.
The Danish central bank, Nationalbanken, last week said inflation would continue this year and next and urged politicians to practice cautious economic policy.
READ ALSO: Danish central bank urges political caution over inflation
Denmark does not have a specific inflation target, but the European Central Bank has set its target for inflation at 2 percent.
The EU-harmonised inflation index is calculated in a way that makes data from the different countries comparable. That means the figures given for Denmark may be different from other inflation rates previously published.
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The statistics agency published on Friday its latest EU-harmonised consumer price index. The figures show an annual inflation of 2.3 percent in Denmark, which represents a fall from 3.2 percent in July.
Both figures are well below the latest figure for inflation across the EU, which is 5.9 percent.
That makes Denmark “the European champions of low inflation,” according to Allan Sørensen, the senior economist with the Confederation of Danish Industry (DI).
“Inflation is slowly moving downwards all across Europe. But there is currently no one who can welcome such low inflation as Danes. Inflation in the eurozone is more than five percent,” Sørensen said in a written comment.
While the inflation index shows a positive trend in Denmark, the opposite is true for Hungary, which has inflation of 14.2 percent.
The price of gas and summer house rentals are helping to bring the country’s EU-comparable inflation rate down.
Economist in Denmark say there is still work to do to reduce core inflation, a measure that does not take into account energy and unprocessed food prices and demonstrates the presence of inflation in other parts of the economy.
Core inflation in Denmark was 4.6 percent in August and 5.7 in July.
The reduction in this metric is also “positive”, economist Brian Friis Helmer of Arbejdernes Landsbank said.
But he added in a written comment that core inflation “can still be found at a much-too-high level”.
The Danish central bank, Nationalbanken, last week said inflation would continue this year and next and urged politicians to practice cautious economic policy.
READ ALSO: Danish central bank urges political caution over inflation
Denmark does not have a specific inflation target, but the European Central Bank has set its target for inflation at 2 percent.
The EU-harmonised inflation index is calculated in a way that makes data from the different countries comparable. That means the figures given for Denmark may be different from other inflation rates previously published.
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