Denmark: Inflation increases in January
February 10, 2021
Consumer prices rose a seasonally-adjusted 0.19% in January over the previous month, swinging from the 0.19% drop recorded in December. Looking at the details of the release, January’s result was largely driven by higher prices for petrol and diesel, although the overall increase was capped by lower prices for clothing.
Inflation came in at 0.6% in January, up from December’s 0.5%, and marked the highest reading in four months. Moreover, core inflation ticked up to 1.1% from December’s 1.0%. Meanwhile, the trend was unchanged with annual average inflation coming in at 0.4% in January for the third month running.
Looking ahead, inflation is set to remain subdued during the first quarter of the year, as economic recovery is still somewhat weak. However, it will gain steam later in the year as the vaccine is rolled out and the economy gradually reopens. Strong growth in household and capital spending should bolster prices further.
Author: Marta Casanovas , Junior Economist