An increase in inflation in September, to 2.4 percent from 1.8 percent the previous month, has impacted already-high living costs.
New data from Statistics Denmark, released Monday, shows the growing rate of inflation in recent months up to September.
The driving force behind inflation is rising energy prices, but inflation occurred even when higher energy prices are not included in the calculation.
- Denmark’s energy prices hit highest level for nine years
- Why customers can expect to pay more at Danish supermarkets
- Why coffee could cost more for Danish consumers in 2022
Core inflation, which does not take into account energy and unprocessed food prices, moved from 0.9 percent to 1.4 percent in September.
The inflation trend in Denmark is in keeping with that seen across Europe. Inflation on the continent is even higher than that recorded in Denmark and increased from 3.2 percent in August to 3.6 percent in September. The core inflation here rose from 1.9 percent to 2,2 percent.
In addition to fuel, the cost and maintenance of transport is also pulling inflation and prices up in Europe, according to the statistics agency.
According to the agency’s analysis, the product group which most contributed to inflation in Denmark between the months of August and September was electricity, gas and other fuels. The product group that contributed the least growth was package holidays. These are consistent with the highest and least contributing groups for both the EU 27 countries and for the euro zone countries.
Inflation is defined by the agency as the change to the Harmonised Index of Consumer Prices (HICP) over the last year. Core inflation is normally used as a longer-term indicator for price changes.
Earlier this month, Statistics Denmark also reported that electricity prices were pulling consumer prices up.
September 2021 saw the overall consumer price index for Denmark at 2.2 percent higher compared to the equivalent month in 2020. That was the largest change across a 12-month period since 2012.
The 2.2 percent price inflation figure takes into account a 2.9 percent increase in the price of goods and 1.6 percent increase in the price of services.´
Price changes within the category ‘home use, electricity and heating’ (boligbenyttelse, elektricitet og opvarmning), particularly the cost of electricity, were the biggest factors in the annual increase.
Electricity increased by 15.2 percent in price between September 2020 and September 2021, the biggest hike since December 2008, during the Global Financial Crisis. Gas prices shot up even more over the year at 52.8 percent, the most since 1980.
Core inflation of consumer prices – without energy costs – increased by 1.3 percent in September. That compares to a 1.0 increase the month before.