Slight increase in inflation due to clothing and electricity

Denmark’s inflation rate rose slightly to 0.9 percent in March compared to the same month last year, showing a modest month-on-month growth of 0.1 percentage points, as reported by Statistics Denmark. Senior Economist Mathias Dollerup Sproegel of Sydbank commented that the rise doesn’t set off any alarms, indicating that inflation in Denmark is under control, and the trend seems similar in the eurozone. This could lead the European Central Bank (ECB) to propose the prospect of lower mortgage rates during its meeting. Despite recent hikes in interest rates worldwide following the energy crisis, European rates are at their highest in decades, which may soon change. Both Sproegel and Palle Sørensen, Chief Economist at Nykredit, anticipate a gradual rise in inflation in the coming months, but not to levels threatening to private finances due to current wage increase rates.