Business Round-Up: Inflation at its highest in decades

has reached its highest level since 1983. In May, prices were 7.4 per cent higher than they were at the same time last year, new figures from Denmark’s statistics.

In particular, commodity prices have risen dramatically. Since last year, the price of raw materials in this category – which includes gas, electricity and food – has risen by 11.4 percent. The price of services has risen by 3.2 percent.

Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, said that the current price increases correspond to an ordinary family having to spend 32,000 kroner extra a year just to maintain their normal consumption. TV2.

Rising prices are not limited to
In a speech to the Folketing, has expressed concern on behalf of the country’s consumers.

“There will be Danes who find it more difficult to make their personal finances stick together,” she said.

In an interview with TV2, Danske Bansk’s chief economist Las Olsen stated that rising prices are not just a Danish phenomenon. In fact, prices are rising all over the world.

Expected fall in inflation
A number of economists have predicted that inflation will “evaporate” by the fall. Before the end of 2022, for example, Arbejdernes Landsbank forecasts that inflation will fall to around 4.5 per cent and fall further to around 3 per cent in 2023.

Still, with the as the normal target for inflation of 2 percent, and where that figure is usually even lower in Denmark, Danes may be tightening their belts for a while yet.

Danish Regions dissatisfied with new agreement
The government and the Danish Regions have entered into a new agreement on expenditure in 2023. The agreement has allocated DKK 1 billion for the regions’ health expenditure and DKK 3 billion for the renovation of old hospitals. Danish Regions had hoped for more and described the agreement as a “very tight agreement” and said that “there is no reason to rejoice”.

Investments in municipalities fell from last year
The government and the National Association of Local Authorities, an interest organization for Denmark’s 98 municipalities, have signed an agreement that sets the terms for the municipalities’ finances next year. The agreement has allocated a total of DKK 18.5 billion, which is DKK 1.4 billion less than in 2022. DKK 1 billion has been earmarked for green investments as well as compensation for various additional expenses.

Rising house prices are not what it seems
Taking into account standard seasonal fluctuations in the housing market, house prices fell by 0.5 per cent in May. In raw numbers, house prices have risen by 0.1 percent. Prices of owner-occupied flats rose by 1 per cent, an increase of 0.6 per cent when market fluctuations are taken into account. The figures, which come from Boligsiden real estate agent, may indicate that the housing market is affected by increases on mortgages and societal price increases.

Danish bakery chain loses money, customers say they do not have to worry
The Danish bakery chain Lagkagehuset, which has consistently lost money over the past 4.5 years since the change of ownership, has had a deficit of DKK 89.4 million for 2021. Lagkagehuset’s said that the deficits were disappointing, but acceptable given the market conditions, which are caused by the pandemic, where its CEO noted that revenue exceeded operating costs by $ 140 million.

Danish companies on their way back to
Danish companies have gradually begun to reopen in Ukraine. Out of the 86 stores that Jysk has in the country, for example, more than 70 stores are currently open. The Danish companies Livatek, Akkerman and Onsite Company have also reopened stores in Ukraine and say that it is necessary to maintain jobs in the war-torn country. Jysk has said that they will not open stores on Russian territory again.

Another streaming service stops production in Denmark
The streaming service Viaplay, together with TV2 Play and Netflix, has stopped the production of Danish content. The decision is a reaction to the rights agreement that was entered into between the Producers ‘Association and Create Denmark in January, and which is to ensure artists’ salaries on an ongoing basis rather than with a lump sum.

Danmarks Nationalbank warns of vulnerability in the housing market
Danmarks Nationalbank has expressed concern that Danish homeowners are increasingly choosing variable-rate and interest-free loans, and says that the trend makes the Danish economy more vulnerable to falling house prices. The bank has recommended that political be done to curb the issuance of this type of loan.

Emissions are rising at the cement factory run by Aalborg Portland
CO2 emissions from the Aalborg Portland cement factory have apparently increased in the period from 2019 to 2021. Michael Lundgaard Thomsen, CEO of Aalborg Portland, tells Jyllands-Posten that the figures must be verified by the Danish Energy Agency, and he further stated. that the increased emissions are likely to be a result of increased construction activity. Aalborg Portland has a goal of reducing CO2 emissions by 30 percent by 2030; as part of a newly implemented agreement, the company must pay 100 kroner for each tonne of CO2 emitted from its quota.

More skilled people are needed to meet Denmark’s green energy goals
Denmark’s green transition may soon be slowed down by a shortage of skilled labor. According to the industry association Green Power Denmark, around 45,000 full-time positions are needed annually to meet Denmark’s 2030 target for emission reductions. But with few young people choosing a vocational education, the country lacks electricians, plumbers and other technicians to achieve its goals. Green Power Denmark has proposed that the Folketing join the organization and develop a plan that will meet the next decade’s labor needs.

Source: The Nordic Page

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