Danish core inflation eases while the headline rate holds at 2.2 per cent
Denmark’s annual consumer inflation stayed at 2.2 per cent in October, while the measure excluding energy and unprocessed food slowed from 1.9 per cent to 1.7 per cent. Electricity and holiday-home rentals pushed prices higher over the month. Fuel and rents supplied substantial annual contributions, while lower food prices held down the overall rate.
Denmark’s consumer prices were 2.2 per cent higher in October than in the same month a year earlier, leaving annual inflation unchanged from September. The country’s national statistical agency, in its 10 November release, put core inflation at 1.7 per cent, down from 1.9 per cent. That measure excludes energy and unprocessed food.[1], [2]
Rent increases were the main influence on the core measure, according to the agency. Transport supplied the largest contribution to overall annual inflation, with fuel particularly important within that category. Fuel added 0.68 percentage points to annual inflation, rents 0.51 percentage points and holiday-home rentals 0.13 percentage points.[1]
Electricity lifts the monthly price index
Between September and October, the overall price index rose 0.5 per cent. Electricity accounted for a 0.42 percentage point positive contribution, holiday-home rentals for 0.18 percentage points and fuel for 0.05 percentage points. Together these three items added 0.65 percentage points to the monthly change.[1]
Hotel accommodation offset part of that increase with a negative contribution of 0.12 percentage points. Package holidays lowered the monthly change by 0.10 percentage points and gambling by 0.06 percentage points. Their combined downward contribution was 0.28 percentage points. On an annual basis, food lowered inflation by 0.28 percentage points, package holidays by 0.11 percentage points and electricity by 0.08 percentage points. Electricity’s monthly contribution was positive and its annual contribution negative, reflecting the different comparison periods.[1]
Food falls as housing and transport become dearer
Food and non-alcoholic beverages fell 0.6 per cent over the month and 2.3 per cent annually. Transport increased 0.7 per cent monthly and 7.4 per cent annually. Housing, water, electricity, gas and other fuels rose 1.7 per cent from September and 2.5 per cent from a year earlier.[1]
Annual inflation under the European harmonized index was 2.1 per cent. Denmark’s national index includes owner-occupied housing through estimated rental values, while the harmonized index leaves out that component. The agency scheduled the European Union’s October aggregate for 18 November.[1]
