Denmark: Inflation stable and below target in November
Latest reading: Inflation was unchanged at October’s 1.6% in November, remaining below the 2.0% target of the ECB, whose monetary policy decisions Denmark follows due to the krone’s peg to the euro. Looking at the details of the release, a faster increase in housing costs offset softer price pressures for textiles and transportation.
That said, the trend pointed up slightly, with annual average inflation coming in at 1.3% in November (October: 1.2%). Meanwhile, core inflation dropped to 1.2% in November from the previous month’s 1.5%.
Finally, consumer prices fell 0.33% in November over the previous month, swinging from October’s 0.59% increase.
Panelist insight: Las Olsen, analyst at Danske Bank, commented:
“Despite pronounced wage increases this year, there has been nothing so far to indicate this has impacted consumer prices. […] We continue to expect that wage pressures will be gradually reflected in consumer prices. The DKK0.50/litre hike in diesel tax in January 2025 will also pull the inflation measure higher. For consumers, this will be alleviated by a reduction in the so-called equalisation tax (‘udligningsafgift’), but this is not included in the consumer price index.”