Rent and electricity drive November inflation

Denmark’s inflation remained steady in November at 1.6%, with rent and electricity prices being the main contributors to the annual price increase. The ‘housing occupancy, electricity, and heating’ group accounted for over half of the inflation. Søren Kristensen from Sydbank views the current inflation level as a good sign, indicating potential growth in real income for Danish consumers and expects inflation to stabilize at just below 2%. The European Central Bank targets 2% inflation in the medium term, and with Denmark’s fixed exchange rate policy, similar inflation rates are expected as in the eurozone in the long run. Palle Sørensen of Nykredit also believes that inflation is no longer a threat to Danes’ purchasing power and predicts a decrease in inflation after a rise in December.