Danish Central Bank Slashes Inflation Forecasts as Wages Cool
- Pressure has eased on Danish labor market, bank says
- Bank warns government 2025 budget risks driving prices higher
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Denmark’s central bank slashed its inflation forecasts for this year and the next, suggesting that the Nordic country will avoid a wage-price spiral.
The 2024 consumer price inflation rate is forecast to be 1.3% compared with a March prediction of 2.2%, according to a statement on Wednesday. The central bank also cut its estimate for the 2025 rate to 2.1% from 2.6%.