Nordea’s Jan Størup Nielsen notes that Danish consumer prices rose 1.9% year-over-year in May, with core inflation at 2.1%, its highest level since the start of 2024. Monthly inflation was driven by higher hotel and travel prices, while food and non-alcoholic beverages fell. Despite the jump, Danish inflation remains well below Euro area inflation, partly due to lower electricity taxes and different index weights.

Core inflation edges higher in May

"In May, Danish consumer prices increased by 1.9% year-over-year. Core inflation increased to 2.1% and is now at the highest level since the start of the year. Despite this, Danish inflation is still markedly below the Euro area."

"Compared to April, the overall Danish consumer price index increased by 0.6%. This was the largest monthly increase in the consumer price index in the month of May since 2022."

"Annual Danish inflation came in at 1.9% in May, up from 1.4% last month. This is the highest level since December last year."

"Due to the government decision to reduce the tariffs on electricity to the EU's minimum rate from the start of the year, electricity subtracted 0.58 percentage points from the annual inflation rate."

"In May, overall inflation in the eurozone was 3.2%. Thus, inflation in the eurozone is still markedly above Denmark."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)