Moreover, core inflation in the first half of 2007 was damped by a number of transitory factors – notably, unusually soft prices for apparel and for financial services – which subsequently reversed. For the year as a whole, however, core PCE prices increased 2.1 percent, down slightly from 2006.
Since the main feature that separates Denmark from those countries is the discussion not to participate in stage III of ERM.” Denmark can now point to a positive interrelationship between higher employment and sound public finance. In that respect, Denmark is a model for us in Germany. Our country is at present in the process of rethinking, and facing up to these difficult challenges.