Danish inflation stays unchanged at 0.5%

Danish inflation increased by 0.5% in September- unchanged compared to last month.

Danish inflation is likely to pick up the pace towards the end of 2015, foresees Nordea Bank. This will both be driven by smaller base effects from energy prices and as a consequence of drop out of the effects from the energy security tax that was introduced in January 2015.

Compared to last year, the rise in Danish consumer prices was broadly based, with Food and Misc. goods and services (mainly financial services) contributing the most. Only Communication, Transport and Clothing contribute negatively to the y/y-inflation numbers in September.

The lower oil prices still play a large part in keeping the annual inflation low, as it affects the price of both heating oil and gasoline. If energy and unprocessed foods are subtracted from the consumer price index, the core inflation reads 1.2% y/y, added Nordea Bank.