Danish inflation slowed for a third month in a row, dragged down by lower electricity costs, suggesting that price increases have peaked and pressure on households is set to ease.
(Bloomberg) — Danish inflation slowed for a third month in a row, dragged down by lower electricity costs, suggesting that price increases have peaked and pressure on households is set to ease.
Consumer prices rose 7.7% in January from a year earlier, Statistics Denmark said on Friday. That compares with a rate of 8.7% in December and is down from a four-decade peak of 10.1% in October.
“After the pressure on families just grew and grew over 2022, the trend is now pointing in the right direction,” Louise Aggerstrom Hansen, a chief analyst at Danske Bank A/S, said in a note. “We expect falling inflation coupled with relatively high wage increases will mean a slow recovery in purchasing power, but it could easily take two to three years before we are back at the level from before prices really started to rise.”
Denmark’s government is currently hammering out the details of a $340 million inflation aid package, mainly targeting senior citizens struggling with the increased cost of living. It follows a program of about $1.5 billion passed last year, which included energy subsidies and a cap on rent increases.
–With assistance from Joel Rinneby.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.