Denmark inflation rises to 1.2% in March on fuel costs amid Iran war energy crisis

• Fuel prices drive transport costs higher; core inflation eases slightly to 1.7%

Denmark’s annual inflation rate rose to 1.2% in March, up from 0.7% in February, driven mainly by higher transport costs, particularly fuel prices, according to official data from Denmark Statistics released on Friday.

The jump in consumer prices was largely attributed to the transport category, where rising fuel costs played a central role in pushing inflation higher from the previous month.

Core inflation, which excludes energy and unprocessed food, edged down slightly to 1.7% year-on-year in March from 1.8% in February.

On a monthly basis, the consumer price index remained unchanged from February to March. Price hikes in fuel, clothing and hotel accommodation contributed upward pressure of 0.44 percentage points, while declines in package holidays, holiday rentals, and electricity offset part of the increase, subtracting 0.38 percentage points.

Denmark’s EU-harmonized inflation rate stood at 1% in March. While bloc-wide data for March has yet to be released, Denmark saw the lowest harmonized inflation rate in the European Union in February at 0.5%, followed by the Greek Cypriot Administration and the Czech Republic.

The data came amid the backdrop of a severe energy shock after the Iran war disrupted flows through the Strait of Hormuz, a key artery for global crude and LNG trade.

Brent crude initially climbed toward $120 a barrel after the waterway’s closure, while continued restrictions on shipping have kept supply concerns elevated even with ceasefire efforts.