New figures from Statistics Denmark show that annual inflation fell to 1.5 percent in March 2025, down from 2.0 percent in February, largely driven by a notable decrease in electricity prices. On a monthly basis, the consumer price index (CPI) declined by 0.5 percent from February to March.
According to the agency, 'The lower inflation in March compared to February is mainly due to the significant decrease in the price of electricity between February and March this year.' Core inflation, which excludes energy and unprocessed food, also eased to 1.6 percent from 1.8 percent the previous month, primarily due to increases in housing rents.
Electricity, package holidays, and petrol were the main contributors to the monthly decline, jointly pulling the CPI down by 0.52 percentage points. This was partially offset by price increases in clothing, furniture, household goods, and gas, which pushed the index up by 0.19 percentage points.
Denmark's EU-harmonised inflation (HICP) stood at 1.4 percent in March. While March EU-wide HICP figures are yet to be released, February data show that France had the lowest inflation among EU member states at 0.9 percent, followed by Ireland (1.4%) and Finland (1.5%). Hungary (5.7%), Romania (5.2%), and Estonia (5.1%) recorded the highest.
The HICP, used for cross-country comparison in the EU, excludes owner-occupied housing costs. Statistics Denmark also reported a 1.4 percent increase in the total net price index and a 1.3 percent rise in the tax-constant version of HICP (HICP-CT) for the year ending March 2025.
The CPI reflects price changes paid by consumers, including VAT and taxes, while the net price index adjusts for these indirect costs. Statistics Denmark will release the next update on 12 May 2025.
More information:
Statistics Denmark
www.dst.dk