Danish inflation dips below 2 percent

Denmark’s inflation has returned to below 2%, specifically at 1.8% in June according to the consumer price index, dropping by 0.4 percentage points from May. The rise in electricity and rental prices was a significant factor, partly because the electricity tax, suspended in the first half of 2023, has been reinstated. Costs for cultural experiences, dining, and transport have increased as well. However, prices for goods such as clothing, alcohol, and communication have remained stable, with furniture and household equipment costing less than the previous year. Core inflation, excluding energy and unprocessed food, is at 1.3%, still below the European Central Bank’s target of 2%. Economists, including Las Olsen from Danske Bank, and Tore Stramer from Dansk Erhverv, predict inflation may rise again in the coming months due to high wage increases and a recovering economy, which could lead to a wage-price spiral.