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Does ‘world’s fifth-most expensive country’ Denmark deserve its costly reputation?

Denmark has been ranked fifth on a list of the most expensive countries in the world for living costs in 2020.

Published: 4 February 2020 13:37 CET
Does 'world’s fifth-most expensive country' Denmark deserve its costly reputation?
File photo: Oscar Scott Carl/Ritzau Scanpix

It is often touted as one of the world’s most expensive nations, and Denmark’s placing on a 2020 index for the cost of living in countries around the world appears to reflect that.

Scandinavian neighbour Norway and fellow Nordic nation Iceland both place ahead of Denmark on the list of most expensive countries for living, as do Japan and Switzerland. The latter was ranked 1st overall.

The list, compiled by business magazine CEO World, ranks 132 countries in order of living costs based on data from a range of studies and media.

Parameters encompassed by the analysis include accommodation, clothing, taxi fares, utility, internet, the price of groceries, transport, and eating out. The data was used to compile a score for each country within five metrics: cost of living, rent, groceries, eating out and purchasing power.

The metrics were then given a value using New York City as a control: if a country has a score of over 100, it is more expensive than New York.

Three countries did in fact achieve this for their overall Cost of Living Index score: Switzerland (122.4), Norway (101.43) and Iceland (100.48).

With an index of 83, Denmark was not too far behind in 5th place.

READ ALSO: Why Denmark is STILL the most expensive EU country for consumer goods

Sweden was the cheapest of the three Scandinavian countries in 23rd (69.85).

The United Kingdom was placed 27th (67.28), Ireland 13th (75.91), the United States 20th (71.05), Canada 24th (67.62) and Australia 16th (73.54).


Photo: CEO World

Looking at the metrics individually, Denmark’s performance was variable.

The Nordic nation was the 17th-most expensive country on the cost of rent index.

For groceries, it was some way down the list at 21st – a surprising conclusion, given that Statistics Denmark last year found Denmark to be the most expensive country in the EU for food and drink products (excluding alcoholic drinks).

Nevertheless, cooking at home may be a good way to save money in Denmark, since it ranked as the fourth-most expensive country to eat at a restaurant – behind Switzerland, Iceland and Norway.

For local purchasing power, Denmark is 8th on the list.

READ ALSO: These are the best ways to save money in Denmark

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COST OF LIVING

IN CHARTS: Which foods in Denmark have gone up in price the least?

Food prices in Denmark have increased significantly on average since 2022, with experts saying they are unlikely to ever return to pre-inflation levels. Which types of food have gone up in price the most, and which ones are holding steady or even getting cheaper?

Published: 3 September 2024 13:58 CEST
IN CHARTS: Which foods in Denmark have gone up in price the least?

The cost of food products in Denmark are now around 22 percent higher on average than they were at the beginning of 2022, when the country was hit by inflation related to high energy prices and the war in Ukraine.

Some products have been affected more than others. Sugar, butter, chocolate and orange juice are also among products whose prices have skyrocketed by as much as 50 percent over the last two and a half years.

Although inflation in Denmark is now close to what is considered a stable and healthy 2 percent, and the economy considered to be in good shape, foods are not expected to return to pre-crisis levels.

READ ALSO: Why food prices in Denmark are higher than ever and unlikely to return to old levels

In the meantime, Denmark’s labour market model has ensured wage rises for many, helping consumers to retain “purchasing power” and afford the higher prices on food.

Nevertheless, many are still forced to economise.

The national statistics agency, Statistics Denmark, keeps data on food prices and inflation in it Forbrugerindeks database, which it publishes online.

This data is organised into various food categories, and can be organised to display the relative change in cost in certain food categories compared to a year ago.

We’ve used this data to compile the following charts, which show how certain food prices trended between July 2023 and July 2024. You should therefore keep in mind that the comparisons are not with pre-inflation prices. Instead, they are a look at how prices have developed since inflation has been relatively stable.

An inflation rate of 2 percent means that, on average, products will be 2 percent more expensive than they were a year ago. But the Forbrugerindeks data shows this varies depending on the type of product.

For staple, carbs-based foods, we can see that rice is more expensive than it was just over a year ago, but pasta, bread and oats are all slightly cheaper.

Meat has gone up in price across the board since last year, with the exception of poultry. Pork is the highest riser and the only one above the 2 percent 'healthy' rate of inflation. Fresh fish is marginally cheaper than it was in 2023.

READ ALSO: Why can't you get fresh fish in supermarkets in Denmark?

Looking at dairy and fat products, the obvious standout is olive oil, which has shot up in price by 50 percent compared to last summer and skews the dimensions of the chart. Other oil types have not seen the same trend, though. Milk is notably more costly than it was a year ago but not yoghurt and cheese, while eggs and butter have recovered from high prices in the summer of 2023. 

If you want to save money on fruit and vegetables, you might need to start drinking (or drink more) smoothies, because frozen fruit is the only sub-category to have fallen in price since last year. However, fresh fruit and jams are both within the 2 percent inflation level. Potatoes and vegetables are now more expensive than in summer 2023.

It may not come as a surprise that, of the selected luxury items below, chocolate has gone up the most in price over the last year. Other types of sweets (candy) and beer are not far behind.

The good news is that coffee has not got more expensive since last summer -- this goes somewhat against expectations that supplies of coffee to Denmark could cause higher prices in future. If you want to save money in this area, though, you might want to consider switching to tea.

Did you find this look at food price data helpful? Is there anything else you'd like us to look at? Let us know in the comments.

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