Inflation in Denmark 'almost at zero' in new figures
Inflation has continued to decline in Denmark and was close to zero in October, according to new data released on Friday.
An index of consumer prices for October, published by national agency Statistics Denmark on Friday, shows inflation for last month was 0.1 percent, down from 0.9 percent in September.
The 0.1 percent figure means that, on average, the price of consumer goods and services are almost the same as they were in October 2022.
The rate of 0.1 percent means inflation is now at its lowest since May 2020. Lower costs or energy, including petrol and electricity, are key reasons for the trend.
“A massive fall in inflation like that over the last year has not been seen since the mid-seventies and has completely taken us by surprise,” the senior economist with the Danish Chamber of Commerce, Tore Stramer, said in a written comment.
“At the start of 2023 it certainly wasn’t the expectation that inflation would be zero by the end of the year,” he said.
The senior economist with the Confederation of Danish Industry (DI), Allan Sørensen, said that inflation would however increase again in the short term.
“Inflation will increase in November and December. In the coming months we won’t get such strong basis effects from energy prices,” he said.
“But inflation will stay at a moderate level,” he said.
Core inflation – which does not take into account raw material and energy prices – was 3.3 percent in October, down by 0.4 percent from the preceding month.
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An index of consumer prices for October, published by national agency Statistics Denmark on Friday, shows inflation for last month was 0.1 percent, down from 0.9 percent in September.
The 0.1 percent figure means that, on average, the price of consumer goods and services are almost the same as they were in October 2022.
The rate of 0.1 percent means inflation is now at its lowest since May 2020. Lower costs or energy, including petrol and electricity, are key reasons for the trend.
“A massive fall in inflation like that over the last year has not been seen since the mid-seventies and has completely taken us by surprise,” the senior economist with the Danish Chamber of Commerce, Tore Stramer, said in a written comment.
“At the start of 2023 it certainly wasn’t the expectation that inflation would be zero by the end of the year,” he said.
The senior economist with the Confederation of Danish Industry (DI), Allan Sørensen, said that inflation would however increase again in the short term.
“Inflation will increase in November and December. In the coming months we won’t get such strong basis effects from energy prices,” he said.
“But inflation will stay at a moderate level,” he said.
Core inflation – which does not take into account raw material and energy prices – was 3.3 percent in October, down by 0.4 percent from the preceding month.
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