Economic Memo provides insight into the analysis work being performed by Danmarks Nationalbank’s employees. For example, Economic Memo contains background analyses and method descriptions. The series is primarily targeted at people who already have knowledge of economic and financial analyses.

Inflation and price development

Looking beyond the impact of energy prices: What drives trend inflation in Denmark?

Before the pandemic, wage and price inflation remained low in Denmark and other advanced economies, despite falling unemployment rates. We attribute the subdued inflation to low competition among firms to hire employed workers. This same force may continue to constrain inflation once the current rise in energy and commodity prices has been passed through to consumer prices.