Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Inflation is on track but some inflationary pressure persists
Inflation has fallen sharply and economic policy has so far succeeded in keeping inflation expectations well anchored. However, there is still some inflationary pressure from higher wages, which typically provides a more persistent inflationary pressure than energy and other commodities. Monetary and fiscal policy still need to curb inflationary pressures.
Key messages
Why is it important?
Danmarks Nationalbank continuously monitors the Danish economy to fulfil our purpose of ensuring stable prices. Danmarks Nationalbank makes business cycle assessments and macroeconomic projections as a basis for assessing whether economic imbalances are building up. Because the Bank’s interest rates are reserved for managing the exchange rate, it is important that the rest of economic policy is aimed at ensuring a stable economy. That is why we make recommendations for fiscal policy, for example.
This analysis is further supplemented by two thematic analyses that delve into the latest developments in the labour market1 and the impact of central bank interest rate increases in Denmark.2
Main chart
Inflation is expected to rise again in the coming year
Note:
Core inflation excluding energy and unprocessed food.
Source:
Statistics Denmark and own calculations.