Denmark Inflation

Inflation ebbs in July from the prior month

Latest reading: Consumer prices rose 1.7% on a year-on-year basis in July, following a 1.9% increase in the previous month. Relative to the prior month's data, there were milder price pressures for housing and utilities (0.0% in annual terms vs +0.5% in June), food and non-alcoholic beverages (-1.6% vs -0.9% in June) and clothing and footwear (+0.9% vs +2.3% in June). In contrast, price pressures were higher for transportation in July (+5.5% vs +4.5% in June). Reduced electricity tariffs subtracted 0.7 percentage points from annual inflation, while lower food inflation was primarily driven by falling pork prices. Denmark’s inflation remains well below the eurozone average, sustained by the electricity tax reduction and a lower weighting for fuel—whose price has surged globally—in the consumer basket. Meanwhile, core consumer prices increased 2.3% in annual terms in July, stable from the previous month's reading. Lastly, consumer prices increased 1.34% in July on a month-on-month basis, following a 0.24% rise in the prior month.

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