Denmark: Inflation moderates to lowest level in more than three years
April 10, 2013
In March, consumer prices rose 0.2% over the previous month, following a 1.2% increase in February. According to Statistics Denmark (DST), the reading mainly reflects lower prices for communication and transport relative to the previous month.
Annual headline inflation slowed to 0.9% in March, down from 1.2% in February and marked the lowest rate in more than three years. Owing to the subdued year-on-year reading, annual average inflation fell from 2.2% in February to 2.0% in March. HICP inflation (based on the harmonized index of consumer prices) also dropped from 1.0% to 0.7% in March. As a result, annual average HICP inched down to 1.9% from 2.1% in February.
The Central Bank expects HICP inflation to reach 2.5% this year and 1.8% the next. FocusEconomics Consensus Forecast panellists expect inflation to average 1.8% in 2013, which is unchanged from last month's forecast. For 2014, panellists expect inflation to average 1.9%.