Lower electricity prices slow inflation

Inflation in Denmark is approaching one percent. In July, consumer prices were 1.1 percent higher than the previous year, a decrease from June’s 1.8 percent, according to new figures from Statistics Denmark. This decrease largely results from smaller price increases of electricity compared to last year. Private sector wage earners benefit from the lower inflation and significant pay raises, the largest in 35 years, which improve their purchasing power. However, during the inflation crisis, wage earners missed out on two years’ worth of real wage growth, with current real wages only 0.8 percent higher than three years ago, missing the expected increase of about three percent.