Today’s news / Danish shops no longer expect price drops

Danish shops no longer expect price drops

Retail businesses in Denmark do not anticipate a decline in goods prices soon, as indicated by Denmark’s Statistical Bureau’s business survey for the upcoming three months. The net expectations for price development among retailers have shifted from -22 to +1 in just one month, signaling an end to the majority expecting to lower prices. Tore Stramer, Chief Economist at the Danish Chamber of Commerce, points out the shift is especially notable among food and beverage retailers. He attributes this shift to rising import and producer prices, partly due to historically high wage increases, driving up production costs. Consequently, retailers are expected to start raising prices, which in turn is predicted to drive consumer price inflation in the coming months. The Danish Chamber of Commerce projects that inflation could increase from the current rate of around one percent to three percent by the end of 2024.