Denmark: Inflation picks up in December
January 10, 2014
In December, consumer prices fell 0.1% over the previous month, which followed the 0.2% drop recorded in the previous month. According to Statistics Denmark (DST), the figure mainly reflects how higher prices for food and non-alcoholic beverages as well as for housing were offset by lower prices for communication and household equipment.
Annual headline inflation edged up from 0.5% in November to 0.8% in December, reaching the highest rate since June 2013. In addition, annual average inflation inched down from 0.9% in November to 0.8% in December. HICP inflation (based on the harmonized index of consumer prices) rose 0.4% (November: 0.3% year-on-year), while annual average HICP inflation inched down from 0.6% in November to 0.5% in December.
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