Denmark: Inflation eases in August
September 10, 2013
In August, consumer prices rose a meager 0.1% over the previous month (July: -0.3%). According to Statistics Denmark (DST), the reading reflects higher prices for clothing and footwear as well as for housing, which were partially offset by lower prices for recreation and culture, as well as for transport.
Annual headline inflation eased from 0.6% in July to 0.4% in August, marking the lowest print on record. In addition, annual average inflation edged down from 1.5% in July to 1.3% in August. HICP inflation (based on the harmonized index of consumer prices) fell from 0.4% in July to 0.1% in August, while annual average HICP inflation, decreased from 1.4% in July to 1.1% in August.
The Central Bank expects HICP inflation to reach 0.8% this year and 1.9% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 1.8% in 2013. For 2014, panelists expect inflation to average 1.9%.
Author: Dirina Mançellari, Senior Economist