Denmark: Inflation falls to three-month low in July
Inflation dropped to 1.1% in July, following June’s 1.8%. July’s reading marked the weakest inflation rate since April and undershot market expectations. Looking at the details of the release, housing and utilities prices rose at a markedly slower pace, which more than offset stronger price growth for transport and food.
Accordingly, the trend pointed down mildly, with annual average inflation coming in at 1.1% in July (June: 1.3%). Meanwhile, core inflation fell to 1.0% in July from June’s 1.3%.
Finally, consumer prices rose a seasonally adjusted 1.10% over the previous month in July, after the flat result seen in June. July’s jump marked the highest reading in a year.
Our panelists expect inflation to accelerate from current levels through December—resulting in inflation averaging above H1 in H2—largely due to a less favorable base of comparison. That said, inflation will fall below 2023’s levels overall in 2024 on past interest rate hikes and a high base of comparison. Stronger-than-expected private consumption growth is an upside risk.