According to TV2, inflation in Denmark is declining. For the third consecutive month, goods and services were generally 7.7% more expensive in January than a year earlier, according to new figures from Statistics Denmark. This represents a one percentage point decrease since December.
An additional cost of living of 36,000 Danish kroner for an average family
Inflation is typically calculated by comparing current prices to those of a year ago, and this is where inflation has fallen. The figures also show that the Consumer Price Index rose by 0.41 TP3T from December to January.
Changes in food, heating and fuel prices also led to a rise in the index by 0.5 percentage points, while prices for electricity, clothing and new cars fell by 0.7 percentage points.
According to Nykredit's chief economist, Palle Sørensen, the problem remains with the Danes' own finances, especially since wages are not keeping pace with inflation.
The price increase means that a family with children today has to spend almost 36,000 Danish kroner more than last year to buy the same goods and services.
Inflation will continue to decline
So far, most economists have predicted that inflation will fall in 2023, and according to Nykredit's chief economist, this will push inflation higher in the short term, thus expecting price increases to end at around 3 percent by the end of the year.
This is due to the fact that prices of raw materials such as energy, timber, iron and wheat have fallen significantly, and even global food prices have been declining over the past ten months.
