Denmark: Inflation eases in May
June 11, 2012
In May, consumer prices were flat over the previous month, mirroring the reading tallied in April. According to Statistics Denmark (DST), the reading reflected higher prices for food and non-alcoholic beverages as well as for restaurants and hotels, which were completely offset by lower transport and housing prices. As result of the flat monthly reading, annual headline inflation dropped to 2.1% from 2.3% in April. Annual average inflation followed suit and inched down from 2.7% in April to 2.6% in May. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) also fell from 2.3% in April to 2.1% in May. The Central Bank expects HICP inflation to reach 2.5% this year and 1.8% the next.