Denmark: Inflation ticks up in September
October 12, 2020
Consumer prices edged down 0.1% in September over the previous month, up from the 0.4% fall recorded in August. Looking at the details of the release, September’s reading largely reflects lower prices for holiday rentals, food and travel. However, higher prices for clothing, hotel accommodation and household furnishings limited the drop.
Inflation in September ticked up to 0.6%, from July and August’s 0.5%, marking the highest inflation rate since February. Moreover, core inflation inched up to 1.0% in September from August’s 0.9%. Meanwhile, the trend remained unchanged for the sixth consecutive month, with annual average inflation standing at 0.5% in September.
Looking ahead, price pressures are seen remaining largely stable for the remainder of this year, although uncertainty regarding the evolution of the pandemic poses both upside and downside risks to inflation. Next year, prices are expected to rise at a stronger pace in line with the economic recovery.
Author: Marta Casanovas , Junior Economist