Why does food in Denmark still seem so expensive despite falling prices?

Food prices have now fallen for four consecutive months in Denmark, but are still higher than they were a year ago.

Danish food prices have skyrocketed by as much as 30 percent over the last five years, but a recent trend has – very slightly – reversed some of the damage to household budgets.

National data from November, compiled by Statistics Denmark and reported by DR, show a fourth consecutive month in which food prices have fallen.

Specifically, the category for food and non-alcoholic beverages has fallen by 2.5 percent in price since July. This means that, on average, an item which cost 50 kroner in the summer is now 1 krone cheaper.

Any changes in price vary between food and item types. Sugar, fish and butter have fallen the most but beef and other meats continue to see steep increases in cost overall, although these also underwent a slight drop in the most recent data.

Although it appears that prices are now moving in the right direction, it should be kept in mind that they are still higher than they were a year ago.

The price of food is up 3.5 percent compared to November 2024, a higher rate than the overall figure for inflation, which is 2.1 percent. That figure is considered to allow economic growth without prices spiraling out of control.

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Looking further back, food prices have shot up over the last five years at a rate which far outstrips wage increases in the same period.

A 30 percent increase over the last five years is significantly more than wage increases in the same period, although there is some evidence that wages are beginning to make up for lost ground.

Senior economist Sofie Holme Andersen with the thinktank Economic Council for the Labour Movement (Arbejderbevægelsens Erhvervsråd, AE) told DR that consumers “felt a historically large increase in inflation in 2022, but have actually seen a drop in food prices since July.”

“That’s a small consolation for people who are still finding it hard to make ends meet,” she added.

Economists believe that the latest figures suggest a likely fall in inflation in the next six months, DR meanwhile writes.

Taxes on electricity, confectionery and coffee are set to be removed or significantly reduced during 2026, which could help lighten the load on household budgets.

The government last week said it expects inflation of 1 percent next year.