Inflation in Denmark reached 10% for the first time since 1982

For the first time in 40 years, the Danish inflation rate has passed the 10% mark. It’s highly probable that rising goods and energy prices are causing a recession in the Nordic countries.

Statistics Denmark reported that the rate was up more than 1% from last month and up 10% from a year earlier. According to surveys conducted by Bloomberg, the expected average inflation rate is 9.6%.

Despite the fact that during the pandemic, Denmark's domestic gross product was significantly higher than the GDP of other countries, at the moment experts believe it to decline. Moreover, consumer confidence has already dropped to its lowest level since the early 1970s.

Thus, the inflation rate in Denmark is currently the lowest since 1982.

In September, the Danish central bank noted that the biggest threat to the economy at the moment is rising inflation, although the growth rate is expected to fall. The bank also advised the government to cut spending in order to avoid triggering a wage-price spiral.