Lower electricity tariffs and food prices offset seasonal rises, keeping Denmark’s inflation below the eurozone’s 2.9% rate.
Denmark’s annual inflation fell to 1.7% in July from 1.9% in June, driven by tax cuts and declining electricity costs. Core inflation remained steady at 2.3%, while monthly prices rose 1.2%, the largest increase since July 2023.
Seasonal factors, including higher rents for summer houses and package holidays, pushed monthly prices up. However, reduced electricity tariffs subtracted 0.68 percentage points from the annual inflation rate, while falling food prices, particularly pork, also weighed on the headline figure.
Eurozone inflation stood at 2.9% in July, widening the gap with Denmark. Analysts attribute the divergence primarily to Denmark’s electricity tax reductions, which began at the start of the year.