Denmark: Inflation drops to lowest rate on record in July
August 12, 2013
In July, consumer prices dropped 0.3% over the previous month (June: -0.1%). According to Statistics Denmark (DST), the print reflects lower prices for clothing and footwear, as well as for recreation and culture.
Annual headline inflation contracted, falling from 0.9% in June to 0.6% in July, which marked the weakest level since records began in 1967. Annual average inflation fell from 1.7% in June to 1.5% in July. HICP inflation (based on the harmonized index of consumer prices) fell from 0.6% in June to 0.4% in July, while annual average HICP, inched down from 1.5% in June to 1.4% in July.
The Central Bank expects HICP inflation to reach 0.8% this year and 1.9% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 1.8% in 2013. For 2014, panellists expect inflation to average 1.9%.