DENMARK / RankWire.AI / – Official data revealed that Denmark’s inflation rate for the year slowed to 1.7% in July from 1.9% in June. The statistics from Statistics Denmark indicated that consumer prices rose by 1.3% compared to the previous month. Core inflation remained steady at 2.3%, matching June’s figure. Notably, price hikes in restaurants and hotels continued to significantly influence the index, while rental costs for holiday homes contributed strongly during the summer travel season.
The consumer price index in July reached 102.92, using 2025 as the base year of 100. The increase was partly driven by holiday home rentals and package holidays, which together added 1.24 percentage points to the monthly rise. Food costs accounted for an additional 0.15 point. Conversely, categories such as clothing, hotel stays, and footwear saw price decreases, collectively reducing the monthly increase by 0.34 percentage point.
Rent expenses contributed 0.55 percentage points to the annual inflation rate, making it the leading positive factor. Holiday home rentals added 0.51 point, and fuel pushed the figure up by 0.39 point. Electricity prices, on the other hand, lowered the annual inflation by 0.68 point. Food costs decreased the rate by 0.26 point, and package holidays trimmed 0.06 point from the yearly figure. The combined effects of these movements brought Denmark’s headline inflation below its June level.
Services continue to surpass goods in price increases
Prices for restaurants and hotels increased by 8.1% from the previous year, marking the strongest growth among major consumer categories. Transport costs rose 5.5%, while costs for information and communication services increased by 4.6%. Education expenses were up by 4.5%, and insurance along with financial services saw a 2.9% rise. Conversely, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
From July 2025, service prices increased by 3.8%, whereas prices for goods dropped by 0.7%. The primary driver of the 2.3% core inflation rate remained higher rents. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Prices in health services grew by 0.7%, and recreation, sport, and culture items increased by 0.8%. These figures highlight a noticeable gap between the inflation trends of services and goods.
Harmonised CPI also Experiences a Drop
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, compared to a 1.8% increase in June. This measure facilitates cross-country inflation comparisons within the European Union. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, whereas the harmonised version excludes this component. In June, Denmark’s harmonised inflation rate was 1.8%. Sweden recorded 1.0%, and the Czech Republic reported 1.1%. Complete inflation data for the EU in July had not yet been released at that time.
The net price index increased by 2.6% year-over-year in July, slightly down from 2.7% in June. This index excludes indirect taxes and duties where applicable and accounts for subsidies that lower consumer prices. The harmonised index at constant tax rates grew by 2.4% compared to July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected across around 1,600 stores, companies, and institutions. The next update for Denmark’s consumer prices is scheduled for September 10.