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Denmark inflation eases, staying below euro-zone rate

Nordea said Denmark’s headline inflation rose 1.7% year over year in July, versus 2.9% in the euro zone, helped by a reduction in electricity taxes.

Reported · Written up by our desk · Major Pairs

Nordea economist Jan Størup Nielsen said Denmark’s inflation eased slightly in July, with headline consumer prices up 1.7% year over year and core inflation holding steady at 2.3%.

In a note highlighted by FXStreet, Nielsen attributed the month-to-month change to seasonal effects that pushed prices higher, including higher rents on summer houses and package holiday costs. He also pointed to offsetting factors that helped keep inflation lower than in the euro area, including lower electricity tariffs and falling food prices, especially pork.

FXStreet also cited Nielsen’s view that Denmark’s inflation is markedly below the euro zone for two main reasons. The first, and largest, was a reduction of Denmark’s electricity tax, with a second factor also referenced but not detailed in the provided material.

FXStreet’s coverage added that the contrast with euro-zone inflation comes as investors continue to monitor broader rate expectations and currency moves in major pairs such as EUR/USD, which was trading in a narrow range around 1.1550 at the time of its commentary.

Latest closeEUR/USD 1.152 ▼0.3%

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