Denmark: Inflation falls to lowest level in more than nine years
May 10, 2013
In April, consumer prices dropped 0.2% over the previous month, contrasting the 0.2% increase tallied in March. According to Statistics Denmark (DST), the print reflects lower prices for household equipment and transportation.
Annual headline inflation slowed from 0.9% in March to 0.8% in April, marking the lowest rate since March 2004. Owing to the subdued year-on-year reading, annual average inflation inched down to 1.9% in April. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) dropped from 0.7% in March to 0.4% in April. As a result, annual average HICP fell from 1.9% in March to 1.8%.
The Central Bank expects HICP inflation to reach 2.5% this year and 1.8% the next. FocusEconomics Consensus Forecast panellists expect inflation to average 1.8% in 2013, which is unchanged from last month's forecast. For 2014, panellists expect inflation to average 1.9%.