Denmark: Inflation drops in April
Inflation inched down to 0.8% in April, which followed March’s 0.9%. April’s result represented the lowest inflation rate since December 2023. Looking at the details of the release, prices for housing and utilities fell. This was partly offset by food and non-alcoholic beverages prices rising in April after dropping in the previous month, and price pressures for transportation picking up pace.
In addition, the trend pointed down, with annual average inflation coming in at 1.4% in April (March: 1.8%). Meanwhile, core inflation edged down to 1.5% in April, from March’s 1.7%.
Finally, consumer prices rose a seasonally adjusted 0.08% over the previous month in April, after the flat result logged in March.
Our Consensus is for average inflation to roughly double from current levels the rest of the year. Despite the acceleration, it will remain slightly below the 2.0% target of the ECB, whose monetary policy decisions Denmark follows due to the krone’s peg to the euro.