Denmark: Inflation remains stable in August
September 10, 2020
Consumer prices decreased a seasonally-adjusted 0.38% in August over the previous month, swinging from the 0.78% increase recorded in July. August’s print marked the sharpest drop in prices in the past 12 months. Looking at the details of the release, a fall in prices for household services, restaurants and hotels, and leisure and culture dragged price pressures downwards, while prices for alcoholic beverages and tobacco, as well as for education increased during the same period.
Inflation in August remained at July’s 0.5% level, still marking the highest inflation rate since February. Meanwhile, the trend remained unchanged for the fifth consecutive month, with annual average inflation at 0.5% in August. Core inflation slightly decreased to 0.9% in August down from July’s 1.0%, largely due to lower prices for hotel stays.
Looking ahead, price pressures are seen remaining largely stable, although uncertainty regarding the evolution of the pandemic poses both upside and downside risks to inflation.
Author: Marta Casanovas , Junior Economist