Business Round-Up: Inflation continues to fall … slowly

Inflation in continues to fall…albeit slowly. In October it reached 10.1 percent – ​​the highest rate in 40 years – but it began to fall in November and again in December.

According to Statistics Denmark, it fell from 8.9 to 8.7 percent in the last month of the year – still far higher than the 3.0 percent it ended 2021 at, but heading in the right direction.

The decrease is mainly due to the , which fell by 0.6 percent in December.

The hard ride is not over
Financial analysts expect inflation to fall a bit more in 2023, but warn that it will still be very high in the first few months.

predicts that inflation will fall to 4.9 percent by the end of the year, which is just as good as wages will only increase by 4.1 percent by then, according to the bank’s forecast.

With negotiations set to begin between employers and unions in an attempt to reach a compromise by March 1, it is a delicately balanced situation.

Economists predict a more rosy picture in 2024, with inflation falling back to around 2 percent and wage increases holding strong at around 4 percent.

Danish industry rises again and again
The overall index of Danish industry rose by 2.4 percent between October and November to a level 12.6 percent higher than the previous year, according to Statistics Denmark, Denmark’s figures are very good compared to the global view, as production grew faster than, for example, , Germany or the United States.

Danish treasury confirms higher profits than expected
The government’s net treasury had a good year, ending with a profit of DKK 128.7 billion – DKK 52.4 billion higher than expected. In 2021, the profit was just DKK 33.3 billion.

Bankruptcies at the highest level in Denmark since 2010
2022 was a really tough year for companies. The 2,834 bankruptcies in Denmark accounted for around 1.3 percent of all active companies – the highest proportion since 2010, according to Statistics Denmark. About 13,700 full-time jobs were lost as a result.

imposed a fine of DKK 30 million for several violations
The industrial group Danfoss has reached a compromise with the US authorities to pay a large fine for 225 possible sanctions violations between 2013 and 2017. Danfoss’ unit in the has sold various components to customers in , and , but has used a US financial institution to receive payment for the goods in 225 cases.

Tax-free distribution to early retirees to help with rising costs
Earlier this week, 300,000 people in Denmark received a tax-free amount of DKK 2,000 from ATP to help them cope with rising consumer prices. The recipients are those who have received either early retirement pension, senior pension, early retirement pension, early retirement pension or flexible benefit in March 2022. “These are citizens who have left the labor market and find it difficult to increase their income by e.g. overtime,” explained Employment Minister .

Unemployment rose again in December
The unemployment rate increased by 2,600 people in December, according to Statistics Denmark. Meanwhile, seasonally adjusted figures show the rate rose by 3,100 in October and November – almost double the 1,800 initially reported.

Source: The Nordic Page

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