A new survey of Danish businesses by national agency Statistics Denmark reveals that 38 percent of the supermarket and groceries sector expects their prices to be lower in the coming months, while only 4 percent expect their prices to rise.
A majority, 58 percent, said they expect no change to prices.
The agency conducts the survey on a monthly basis, but has not seen such a strong lean towards lowering prices since 2024.
This means there is good reason to be hopeful about lower food prices this year, economist Brian Friis Helmer of AL Sydbank told news wire Ritzau.
“We have also seen food prices fall over the past five consecutive months by almost five percent, and even though some of this is due to entirely normal Christmas promotions on butter and meat, it is good news for consumers,” he said.
Tore Stramer, chief economist at the Confederation of Danish Industry said he also believes the figures are evidence that prices are on a sustained downward trend.
That could lead to higher consumer spending, Stramer told Ritzau. Cuts to electricity, coffee and chocolate taxes are also notable factors, he said.
“That, combined with the fact that Danes have built up substantial wealth and, to begin with, spend a relatively small share of their income on consumer goods, means there is a fairly strong potential for growth in private spending,” he stated in a written comment.
Tax cuts on electricity, coffee, books and chocolate are among measures taken by the government in the 2026 budget aimed at addressing high cost of living.
READ ALSO: Will Denmark’s 2026 budget really improve your finances?
The government is also currently considering cutting VAT (moms) across food products.
Falling prices in the retail sector are related to a decline in the cost of raw materials on the global market in recent months, and thereby lower costs for food producers, Ritzau writes.
Comments