Denmark registers zero inflation in March

No inflation was recorded in Denmark in March as compared to the same month last year, figures from the country's national statistical agency showed Monday.

"There was no increase in the consumer price index (CPI) in March compared to the same month last year, which is the lowest annual increase in the CPI since January 2015," said Danmarks Statistik.

Excluding energy and unprocessed food, the underlying inflation rose 0.5 percent in March year-on-year.

In the past year, the category of other goods and services registered the greatest price increase of 2.7 percent, mainly due to higher prices of bank charges and insurance, while clothing and footwear saw the largest price drop of 4.1 percent.

Data also showed that Denmark's CPI increased 0.1 percent in March compared to February, pulled up by the price rise for clothes, oil and shoes.

"Today's figures are clearly a disappointment in terms of the current developments in private consumption," said Steen Bocian, senior economist at Confederation of Danish Enterprise.

"There is nothing to indicate that the Danish economy here and now is on the way out of the growth crisis, despite low interest rates and oil prices as well as increasing employment," Bocian was quoted as saying by Danish news agency Ritzau.

According to Tore Stramer, chief analyst at Nykredit, the CPI development is an indication that the Danish economy is facing the threat of deflation again.

"The fact that inflation has now gone to zero again obviously tends to fuel fears that the Danish economy could be hit by deflation. It is certainly a toxic situation we should avoid," said Stramer. Endit