Inflation accelerates in May from the prior month

Latest reading: Consumer prices rose 1.9% on a year-on-year basis in May, following a 1.4% increase in the previous month. Despite increasing, May’s inflation print remained significantly below the EU average. Relative to the previous month's figures, there were higher price pressures for housing and utilities (+0.4% in annual terms vs 0.0% in April), transportation (+5.3% vs +3.3% in April) and clothing and footwear (+0.1% vs -0.1% in April). In contrast, price pressures reduced for food and non-alcoholic beverages in May (-0.3% vs +2.7% in April). Fuel prices pressures pushed headline inflation higher, reflecting higher energy costs linked to the Iran war. In contrast, electricity prices continued to decline following the government’s decision to reduce electricity tariffs at the start of the year, helping to limiting the overall increase in inflation. Meanwhile, core consumer prices increased 2.1% in annual terms in May, following a 1.6% rise in the prior month. Finally, consumer prices increased 0.58% in May on a month-on-month basis, following a 0.24% rise in the prior month.

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Danish inflation projections for the next ten years from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Danish inflation.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Danish inflation projections.

Want to get access to the full dataset of Danish inflation forecasts? Send an email to info@focus-economics.com.