Danish inflation slowed for the second month in a row on moderating electricity and gasoline costs, suggesting that price increases have peaked.
(Bloomberg) — Danish inflation slowed for the second month in a row on moderating electricity and gasoline costs, suggesting that price increases have peaked.
Consumer price inflation rose 8.7% in December from the same month a year earlier, Statistics Denmark said on Monday. That compares with a rate of 8.9% in November and is down from a four-decade peak of 10.1% in October.
“It’s a very big relief to see the inflation rate coming down again,” Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, said in a note. “Inflation is set to continue to fall through 2023 as several underlying elements are pulling down,” including lower global food prices, freight rates and raw materials costs, the economist said.
Denmark’s central bank has identified inflation as the biggest threat to the economy, which for about a decade enjoyed some of the world’s lowest policy rates. Nationalbanken doesn’t have a mandate to steer inflation though, as its main goal is to peg the krone to the euro in a tight band.
Prices fell 0.6% between November and December as electricity prices dropped 0.3% and gasoline and diesel prices declined by 0.2%, the agency said.
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