Denmark: Inflation accelerates in May from the prior month
Latest reading: Consumer prices rose 1.9% on a year-on-year basis in May, following a 1.4% increase in the previous month. Despite increasing, May’s inflation print remained significantly below the EU average.
Relative to the previous month’s figures, there were higher price pressures for housing and utilities (+0.4% in annual terms vs 0.0% in April), transportation (+5.3% vs +3.3% in April) and clothing and footwear (+0.1% vs -0.1% in April). In contrast, price pressures reduced for food and non-alcoholic beverages in May (-0.3% vs +2.7% in April).
Fuel prices pressures pushed headline inflation higher, reflecting higher energy costs linked to the Iran war. In contrast, electricity prices continued to decline following the government’s decision to reduce electricity tariffs at the start of the year, helping to limiting the overall increase in inflation.
Meanwhile, core consumer prices increased 2.1% in annual terms in May, following a 1.6% rise in the prior month.
Finally, consumer prices increased 0.58% in May on a month-on-month basis, following a 0.24% rise in the prior month.