Denmark Sounds Deflationary Alarm Amid Negative Rates: Chart

Danish annual inflation was flat in March after growing modestly for 13 months in a row. With the country’s benchmark interest rate likely to remain negative for some time, Jacob Graven of Sydbank says the latest consumer price data highlights the risk of a "devastating deflationary spiral." Nordea Bank chief economist Helge Pedersen argues that Denmark has fallen victim to European easing, with low rates causing a "circular effect" that’s pushing inflation down.

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