Annual inflation in Denmark reached its highest level since 1983, reaching 7.4% in May due to rising energy and food prices. Higher costs for electricity, energy and food are the major driving forces behind the rise, official data shows.
Consumer prices in Denmark in May were 7.4% higher than a year earlier, official data released on Friday shows. That is the highest 12-month inflation recorded in the country since 1983, The Local reports.
The rise has been blamed on soaring electricity, energy and food prices.
According to Mathias Dollerup Sproegel, senior economist with Sydbank, the average household budget for a family with two children in Denmark is now 30,000 kroner ($4,264) more per year compared to a year ago.
“The Danish economy is therefore facing some challenging months and quarters in which it will be decisive whether consumers decide to take a hit on their savings to maintain spending power,” Sproegel told the outlet.
Senior economist with the Danish Chamber of Commerce, Tore Stramer, projected that inflation could peak this summer before declining.
“The speed at which inflation declines is, however, uncertain and depends upon factors including future development of energy prices,” Stramer said, as quoted by The Local.
Earlier this month, Denmark was cut off from Russian natural gas supply following the refusal of its biggest power wholesaler, Orsted, to pay for deliveries in rubles.