In this article, we explore how developments in key macroeconomic driving forces can explain developments in consumer price inflation since 2001. The relationships are analysed using empirical models. We find that prices for domestically produced goods and services excluding rent have moved in line with capacity utilisation and unit labour costs in household-oriented sectors. We also find that the rise in rental prices can, to a considerable extent, be explained by the general rise in consumer prices. A stronger krone and weak external price impulses have been the most important driving forces behind the decrease in prices for imported consumer goods since 2001.