Prices likely rose in Denmark in February

Denmark's February inflation print is expected to show that prices rose 0.8% m/m and 0.4% y/y. The annual adjustment of the rent component of the CPI has been made in February. Rents account for about 20% of the overall index. Hence the February print will provide a good idea about 2016. Contribution from rents to inflation is expected to be somewhat smaller than in 2015 as most of the adjustment is based on the last reference period's net price index.

Decline in petrol prices in February are also likely to decelerate inflation. Denmark's food and hotels prices are expected to be higher in the month after declining sharply in January. Meanwhile, the country in 2015 had posted disappointing exports figures. The current account was majorly hit in the past year due to difficult shipping conditions.

"We expect the current account surplus to fall to DKK8.7bn in January (DKK11.3bn seasonally adjusted), due partly to it tending to be slightly smaller in the first quarter of the year and partly to the continued problems for shipping", says Dansk Bank.