The index, which takes into account EU consumer prices, was released by national agency Statistics Denmark on Monday.

December’s figure for inflation in Denmark was calculated to be 9.6 percent, meaning consumer prices were 9.6 percent higher compared to 12 months prior. The figure in November was slightly lower at 9.7 percent.

READ ALSO: Inflation falls in Denmark for second consecutive month

Further evidence of falling inflation in Denmark is a welcome sign according to private economist Brian Friis Helmer of Arbejdernes Landsbank.

“But a sting in the tail is that the so-called ‘core inflation’ has increased form 6.9 percent to 7.4 percent in December,” Helmer told news wire Ritzau in a written comment.

Core inflation or kerneinflation is the inflation of prices excluding food and energy prices and is sometimes used by economists as a measure of how entrenched inflation has become.

“High core inflation shows that quite a broad cross section of Danes’ purchases is affected by high prices,” Helmer said.

The latest figures suggest that inflation will continue to fade towards the end of this year, a second analyst said.

“There are continued price drops for energy, raw materials and transport as well as higher interest and declining global demand. These will put a dampener on inflation during 2023,” senior economist Kristian Skriver of the Danish Chamber of Commerce stated in a written comment.

The EU-harmonised index shows that price increases are broadly falling across the 27 EU member countries, with 11.1 percent inflation in November dropping to 10.4 percent in December.

While falling electricity prices are a key component of Denmark’s lower inflation, it is cheaper gas that is helping to reduce prices more broadly.

READ ALSO: Low European gas prices ‘will benefit’ energy consumers in Denmark