Economists: Low inflation may be temporary

In April, consumer prices in Denmark increased by 0.8 percent from the previous year, down slightly from the 0.9 percent increase reported in March, according to Statistics Denmark. The annual price rise is mainly due to higher rent and costs for restaurant and café visits. Service prices rose on average by 2.9 percent, driven largely by rent, while the average prices for goods fell by 1.5 percent, with a notable decrease in electricity prices. Inflation has been below one percent for seven out of the last eight months, although it reached 1.2 percent in January. In comparison, during the same period in 2023, inflation was around ten percent for several months and above five percent for all months. Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, notes the current ‘insanely low’ inflation provides relief to Danes following a significant cut into their purchasing power one and a half years ago.