Low inflation spurring consumption

The current low inflation rate of 0.9 percent has resulted in real wage increases of about 7bn kroner, according to calculations by mortgage lender Nykredit. The 1.8 percent increase is the highest in four years and pushes wages back up to 2009 levels. Retailers say that extra money is already starting to flow into their tills and expect that if growth continues apace their sales could surpass pre-recession levels before long. Consumers spend about 900 billion kroner each year, and account for half of the country’s economic activity. – Børsen