Inflation stays below two percent with slight rise

In Denmark, inflation saw a slight increase to 1.6 percent in October, as reported by Statistics Denmark on Monday morning. This was a rise from 1.3 percent in September compared to the same month the previous year, attributed in part to higher electricity prices. The European Central Bank aims for a medium-term inflation target of two percent, and because Denmark maintains a fixed exchange rate policy with the euro, it effectively imports the ECB’s price stability. Core inflation, excluding energy and unprocessed foods, was at 1.5 percent in October, slightly down from 1.6 percent in September. According to Louise Aggerstrøm Hansen from Danske Bank, this decline in inflation leads to an increase in the real wages for Danes since wage growth outpaces inflation. Additionally, food prices, with significant increases in the costs of butter and olive oil, also contributed to the overall inflation in October.