DENMARK / RankWire.AI / – Official data revealed that Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Statistics Denmark reported that consumer prices increased by 1.3% from the previous month. The core inflation rate remained steady at 2.3%, matching the June figure. Notably, price hikes in restaurants and hotels continued to be significant drivers of the index. Additionally, holiday home rentals contributed substantially during the summer travel season.
The consumer price index reached 102.92 in July, with 2025 serving as the base year of 100. The combined impact of holiday home rentals and package holidays added 1.24 percentage points to the monthly growth, while food prices contributed an extra 0.15 point. Conversely, categories such as clothing, hotel accommodations, and footwear moved downward, reducing the monthly increase by a total of 0.34 percentage point.
Rent accounted for the largest positive influence on the annual inflation figure, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity prices, however, decreased annual inflation by 0.68 point, and food prices further lowered it by 0.26 point. Package holidays slightly trimmed 0.06 point from the yearly rate. Collectively, these category shifts brought the headline inflation below its June level.
Services Outpace Goods in Price Increases
Prices in restaurants and hotels surged 8.1% compared to the previous year, marking the strongest increase among major consumer categories. Transport costs rose 5.5%, while information and communication expenses increased by 4.6%. Education prices grew 4.5%, and insurance and financial services experienced a 2.9% rise. Conversely, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell 1.1% over the same period.
Year-over-year, service prices increased by 3.8% from July 2025, whereas goods prices decreased by 0.7%. The primary factor behind the 2.3% core inflation rate was higher rents. The prices of housing, water, electricity, gas, and other fuels remained unchanged on an annual basis. Health-related prices rose 0.7%, and recreation, sport, and culture costs increased by 0.8%. These figures clearly demonstrate a notable divergence between service inflation and goods price movements.
Harmonised Index Also Shows a Downward Trend
Denmark’s harmonised consumer price index increased 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union countries. Denmark’s national CPI includes owner-occupied housing costs estimated through rental values, while the harmonised index excludes this component. In June, Denmark’s harmonised inflation rate was 1.8%. Sweden’s rate stood at 1.0%, and the Czech Republic recorded 1.1%. The complete EU inflation figures for July have not yet been published.
The net price index increased by 2.6% year-over-year in July, slightly down from 2.7% in June. This measure accounts for indirect taxes and duties where possible and incorporates subsidies that reduce consumer prices. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices across around 1,600 shops, companies, and institutions. The next consumer price update is scheduled for September 10.