PUBLISHED February 28, 2026
According to the latest consumer price release from Statistics Denmark (DST), inflation in Denmark cooled markedly at the beginning of 2026, signalling easing price pressure in the economy.
The Consumer Price Index showed that inflation stood at 0.8% year-on-year in January 2026, a clear slowdown compared with late-2025 levels.
At the same time, core inflation reached 1.9%, indicating that underlying price growth remains moderate but still present.
The softer annual figure was reinforced by a noticeable monthly drop. From December 2025 to January 2026, the consumer price index fell by 0.6%, pointing to short-term easing in consumer costs.
Statistics Denmark notes that falling prices for electricity, clothing and holiday home rentals were the main factors pulling the index lower during the month. These declines more than offset price increases in categories such as soft drinks, butter and oil, and package holidays.
The data suggest that energy-related components continue to play an important role in Denmark’s inflation dynamics.
The softer annual figure was reinforced by a noticeable monthly drop. From December 2025 to January 2026, the consumer price index fell by 0.6%, pointing to short-term easing in consumer costs.
Statistics Denmark notes that falling prices for electricity, clothing and holiday home rentals were the main factors pulling the index lower during the month. These declines more than offset price increases in categories such as soft drinks, butter and oil, and package holidays.
The data suggest that energy-related components continue to play an important role in Denmark’s inflation dynamics.
Despite the overall slowdown, some components continue to exert upward pressure. On a year-on-year basis, housing costs — particularly rent — remain the largest contributor to inflation, followed by food items such as meat and takeaway meals.
This pattern indicates that while headline inflation is low, domestic price pressures tied to services and housing have not fully disappeared.
DST also highlighted a methodological update. From January 2026, the consumer price index and related measures are calculated using a new weight base, reflecting updated household consumption patterns.
Such revisions are routine but important, as they ensure the inflation basket better reflects how Danish households actually spend their money. For analysts, the change means early-2026 figures should be interpreted within the context of the updated structure.
Taken together, the January release points to a Danish inflation environment that has cooled significantly compared with the peaks seen in previous years. The combination of falling monthly prices and low annual inflation suggests that price pressures are currently well contained.
However, the continued contribution from housing and services shows that underlying inflation has not vanished entirely. Much will depend on how energy prices and domestic cost pressures evolve in the coming months.
Bottom line: Denmark entered 2026 with sharply lower inflation, supported by falling electricity and clothing prices. While the overall price environment looks benign, housing-related costs remain the key area to watch.
Despite the overall slowdown, some components continue to exert upward pressure. On a year-on-year basis, housing costs — particularly rent — remain the largest contributor to inflation, followed by food items such as meat and takeaway meals.
This pattern indicates that while headline inflation is low, domestic price pressures tied to services and housing have not fully disappeared.
DST also highlighted a methodological update. From January 2026, the consumer price index and related measures are calculated using a new weight base, reflecting updated household consumption patterns.
Such revisions are routine but important, as they ensure the inflation basket better reflects how Danish households actually spend their money. For analysts, the change means early-2026 figures should be interpreted within the context of the updated structure.
Taken together, the January release points to a Danish inflation environment that has cooled significantly compared with the peaks seen in previous years. The combination of falling monthly prices and low annual inflation suggests that price pressures are currently well contained.
However, the continued contribution from housing and services shows that underlying inflation has not vanished entirely. Much will depend on how energy prices and domestic cost pressures evolve in the coming months.
Bottom line: Denmark entered 2026 with sharply lower inflation, supported by falling electricity and clothing prices. While the overall price environment looks benign, housing-related costs remain the key area to watch.
Reform PRODUCTS & SERVICES Group
Szentendrei út 87.
1033 Budapest
Hungary