Slight rise in inflation in august despite price drop

Inflation in Denmark increased slightly in August, reaching 1.4% compared to the same month last year, a minor increase from July’s 1.1%. This rise was due to higher electricity and rent prices, however, goods only saw a 0.3% average increase over the past year. Chief Economist Jeppe Juul Borre of Arbejdernes Landsbank urges no panic, explaining the rise as a technicality since inflation is measured by yearly price increases and prices actually fell in August compared to July. Inflation remains low overall, indicating positive news for Danes. Danske Bank’s Chief Analyst Louise Aggerstrøm Hansen noted that with wage growth now far exceeding inflation, the majority of Danes will have more disposable income, potentially boosting future consumer spending after a cautious period. Core inflation, excluding energy and unprocessed food, was 1.2% in August, also a slight increase from July’s 1.0%.