Today’s news / Electricity Prices Drive Up Inflation
Inflation has increased in January due to rising electricity prices. (File photo). Photo: Ida Marie Odgaard/Ritzau Scanpix

Electricity Prices Drive Up Inflation

January’s inflation in Denmark hit 1.2 percent on an annual basis, a 0.5 percentage point increase from December, primarily due to electricity price changes, which pushed the consumer price index up by 0.6 percentage points. However, prices changes for clothing, shoes, furniture, and cars offset this rise somewhat. Chief Economist Allan Sørensen from the Confederation of Danish Industry notes that the general inflation remains low, signifying a recovery in purchasing power after 2022’s high inflation rate. He also commented that while goods inflation has decreased substantially, service prices are rising somewhat quickly, with notable increases in restaurants and cultural experiences. Following an agreement on an economic framework for public employees, inflation could slightly rise in 2024, suggests Sydbank Chief Economist Søren Kristensen. Nevertheless, the resurgence in purchasing power is expected to positively impact the Danish economy in 2024.