Denmark experienced the first deflation since 1954 as consumer prices fell in January, data from the country's national statistical agency showed Tuesday.

Denmark's consumer price index (CPI) fell 0.1 percent in January 2015 compared to the same month last year, said Danmarks Statistik.

The slide was primarily due to the falling price of oil and a rollback of the security of supply tax, Danmarks Statistik explained.

The CPI is used to determine change in prices associated with the cost of living. It examines the average of prices of a basket of consumer goods and services, weighted according to importance.

Moreover, falls in the price of clothes and telephone services helped draw the CPI downwards, the data shows.

In the past year, the category of communication registered the sharpest price drop - at 4.2 percent - owing to lower prices of telecommunication services and mobile phones.

However, the price of educational services had the largest price increase of 2.8 percent as it became dearer to access to private schooling.

Analysts here remarked that the deflation is generally good for the purchasing power.

"It is worth emphasizing that in the current situation it is good news for the Danish economy. As long as the lower inflation is due to falling energy prices and lower taxes, it is helping to support the purchasing power of Danish households, " Jan Stoerup Nielsen, senior analyst at Nordea Bank, was quoted as saying by the Danish business newspaper Borsen. Enditem

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