What are the food items experiencing the highest price increases in Denmark?
In a recent development, food prices in Denmark have witnessed a substantial rise, with the "food and non-alcoholic drinks" product category experiencing an average price increase of 6.5%. This marks a rise of about 5.2% in food and non-alcoholic beverage prices over the past year, according to official data from May 2025.
This increase, the largest in three months compared to 3.7% in April 2025, is attributed to a variety of factors. General inflationary pressures have caused Denmark’s annual inflation rate to modestly increase to 1.6% in May 2025, partly driven by food prices.
Rising costs in health and alcoholic beverages suggest broader consumer price increases that can indirectly impact food supply chains, potentially leading to increased transportation and packaging costs. Global and regional inflation trends in the EU and OECD countries, with inflationary pressures still impacting consumer goods including food across Europe in 2024–2025, also play a role.
Tariff-induced price pressures, while specific to other countries like the US, hint at potential trade costs affecting goods like food internationally. Lastly, broader cost of living increases may affect wages and input costs for food production and distribution, as minimum wage adjustments in OECD countries (including Denmark’s collective wage agreements) can increase labor costs which sometimes get transferred into higher consumer prices.
Compared to neighbouring countries, food inflation in Denmark (5.2%) is somewhat consistent with Sweden’s food and non-alcoholic beverage inflation of around 5.3% in mid-2025, reflecting regional inflationary dynamics.
Economist Ann Lehmann Erichsen suggests that the imbalance between supply and demand is causing prices to rise. This is evident in the declining Danish cattle population, contributing to the rise in mince beef prices. Similar trends of declining cattle populations and increased beef prices are observed in Germany and the Netherlands.
Other food items, such as butter, fruit juice, cheese, and chocolate, have also seen significant price increases. Butter prices have risen by 17.2%, while cheese prices have risen by 10.8%. Coffee, beef, and chocolate prices are causing "hard-pressed consumers" to experience increased costs. Coffee, for instance, is 32.1% more expensive now than it was a year ago.
However, there is some positive news. The price of sugar has decreased by 18.9%, while the price of olive oil has decreased by 18.4%. A recent report published in the Jyllands-Posten newspaper highlighted a decline in mince beef sales, with Danish supermarkets reporting a sharp drop in sales of the product.
Inflation in Denmark remains stable at 2.3%, according to the latest data. Despite the food price increase, the overall cost of living in Denmark appears to be relatively steady. Economist Ann Lehmann Erichsen made these comments in an interview with DR.
In conclusion, food prices in Denmark have significantly risen, with beef, coffee, and chocolate prices causing the most concern for consumers. However, it's important to note that not all food prices have risen, with sugar and olive oil seeing a decrease. The imbalance between supply and demand, general inflation, increased input and operational costs, and regional economic factors are believed to be the main drivers of these price increases.
