Denmark: Inflation hits near two-year high in March
April 12, 2021
Consumer prices rose a seasonally-adjusted 0.10% in March over the previous month, which was below February's 0.58% increase. Looking at the details of the release, March’s print reflected higher prices for petrol and diesel, while price pressures for food eased.
Inflation came in at 1.0% in March, up from February’s 0.6%. March's figure was the highest inflation rate since April 2019. Meanwhile, the trend was unchanged for the fifth month running, with annual average inflation coming in at February's 0.4% in March. Lastly, core inflation was steady, coming in at February's 0.8% in March.
Looking ahead, inflation is seen remaining broadly stable at its current levels in Q2. Late in the year, it is projected to pick up as economic activity strengthens amid the gradual rollout of Covid-19 vaccines and the lifting of restrictions. Moreover, continued low lending rates and robust growth in spending are set to bolster prices ahead.
Author: Marta Casanovas , Junior Economist