Denmark: Inflation eases in April
May 22, 2012
In April, consumer prices were flat over the previous month, which came in well below the 0.5% increase recorded in March. According to Statistics Denmark (DST), the reading reflected higher prices for alcoholic beverages and tobacco as well as for clothing and footwear, which were completely offset by lower food and housing prices. As result of the flat monthly reading, annual headline inflation dropped to 2.3% from 2.7% in March. Annual average inflation followed suit and inched down from 2.8% in March to 2.7% in April. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) fell from 2.7% in March to 2.3% in April. The Central Bank expects HICP inflation to reach 2.5% this year and 1.8% the next.