Denmark's April inflation rate rose to 3.2 percent, the highest since June 2000, as accelerating wage growth adds to pressure from soaring food and fuel prices.
Inflation accelerated from 3.1 percent in March, Copenhagen- based Statistics Denmark said on its Web site today. The median estimate of six economists surveyed by Bloomberg was 3.2 percent. Prices gained 0.3 percent in the month.
"Food prices are continuing their ascent toward the skies and it's also clear that the very high oil prices we're seeing now will contribute to accelerating inflation in May,'' said Anders Matzen, chief analyst at Nordea Bank AB in Copenhagen. "We probably haven't seen the last inflation record in the current cycle.''
Danes have seen prices of agricultural goods soar as global weather extremes hurt supply, while the increasing use of biofuels pushes up demand. Consumers are paying on average 15 percent more for bread than they did at the beginning of last year, 18 percent more for milk and 15 percent more for fuel.
Oil traded in New York jumped to a record $126.40 a barrel yesterday, with Danes now paying more than 11 kroner ($2.29) a liter for gasoline.
The biggest annual gain was in the price of foods and non- alcoholic beverages, which rose 7.7 percent. Transport costs, which include fuel, gained 3.4 percent, the office said.
Labor Shortage
Adding to price pressure is a labor shortage that's forcing companies to pay higher wages. Average pay grew an annual 4.6 percent in the fourth quarter, the fastest pace in six and a half years, according to the Danish Employers Confederation. Unemployment dropped to 1.9 percent in March, the lowest since 1973.
Health-care workers have been striking since April 16 after rejecting the 12.8 percent pay increase over the next three years offered by the state. They want 15 percent.
Growing demands by state workers for higher pay risk feeding through to private industry, spelling a wage-price spiral, Prime Minister Anders Fogh Rasmussen has warned. He says that would hurt the country's exports, which account for almost half of gross domestic product.
Denmark's European harmonized annual inflation rate was 3.4 percent in April, compared with 3.3 in March. Prices gained 0.4 in the month, the office said.
The central bank has raised the benchmark interest rate nine times since December 2005, bringing it to 4.25 percent. The bank doesn't target price stability because its sole mandate is to keep the krone pegged to the euro in a 2.25 percent band, forcing it to track moves by the European Central Bank.
Inflation accelerated from 3.1 percent in March, Copenhagen- based Statistics Denmark said on its Web site today. The median estimate of six economists surveyed by Bloomberg was 3.2 percent. Prices gained 0.3 percent in the month.
"Food prices are continuing their ascent toward the skies and it's also clear that the very high oil prices we're seeing now will contribute to accelerating inflation in May,'' said Anders Matzen, chief analyst at Nordea Bank AB in Copenhagen. "We probably haven't seen the last inflation record in the current cycle.''
Danes have seen prices of agricultural goods soar as global weather extremes hurt supply, while the increasing use of biofuels pushes up demand. Consumers are paying on average 15 percent more for bread than they did at the beginning of last year, 18 percent more for milk and 15 percent more for fuel.
Oil traded in New York jumped to a record $126.40 a barrel yesterday, with Danes now paying more than 11 kroner ($2.29) a liter for gasoline.
The biggest annual gain was in the price of foods and non- alcoholic beverages, which rose 7.7 percent. Transport costs, which include fuel, gained 3.4 percent, the office said.
Labor Shortage
Adding to price pressure is a labor shortage that's forcing companies to pay higher wages. Average pay grew an annual 4.6 percent in the fourth quarter, the fastest pace in six and a half years, according to the Danish Employers Confederation. Unemployment dropped to 1.9 percent in March, the lowest since 1973.
Health-care workers have been striking since April 16 after rejecting the 12.8 percent pay increase over the next three years offered by the state. They want 15 percent.
Growing demands by state workers for higher pay risk feeding through to private industry, spelling a wage-price spiral, Prime Minister Anders Fogh Rasmussen has warned. He says that would hurt the country's exports, which account for almost half of gross domestic product.
Denmark's European harmonized annual inflation rate was 3.4 percent in April, compared with 3.3 in March. Prices gained 0.4 in the month, the office said.
The central bank has raised the benchmark interest rate nine times since December 2005, bringing it to 4.25 percent. The bank doesn't target price stability because its sole mandate is to keep the krone pegged to the euro in a 2.25 percent band, forcing it to track moves by the European Central Bank.
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