Denmark: Inflation rises in January
February 11, 2014
In January, consumer prices fell 0.2% over the previous month, which followed the 0.1% drop recorded in December. According to Statistics Denmark (DST), the figure mainly shows that higher prices for alcoholic beverages and tobacco were offset by lower prices for food and non-alcoholic beverages as well as for leisure and culture.
Annual headline inflation edged up from 0.8% in December to 1.0% in January, thus reaching the highest rate in almost a year. Annual average inflation was stable at December's 0.8%. HICP inflation (based on the harmonized index of consumer prices) rose 0.8% (December: 0.4% year-on-year), while annual average HICP inflation was stable at the previous month's 0.5%.
The Central Bank expects HICP inflation to be 1.9% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 1.4% in 2014, which is unchanged from last month's estimate. For 2015, panelists expect inflation to average 1.7%.
Author: Dirina Mançellari, Senior Economist