Denmark: Inflation stable in December
Consumer prices fell 0.19% in December over the previous month, worsening from Novembers 0.10% drop and marking the sharpest price decrease in four months. Looking at the details of the release, Decembers fall was driven by lower prices for food, clothing, and air travel.
Inflation in December was unchanged at 0.5%, matching Novembers reading. However, core inflation ticked down to 1.0% in December from Novembers 1.2%. Meanwhile, the trend was unchanged, with annual average inflation in December coming in at Novembers 0.4%.
Looking ahead, inflation is set to pick up mildly this year from 2020s muted price pressures. Household and capital spending will likely rebound this year as the economic recovery strengthens and on prospects of a rapid vaccine rollout, thus boosting price pressures this year.