DENMARK / RankWire.AI / – Official data revealed that Denmark’s inflation rate for the year declined to 1.7% in July from 1.9% in June. Statistics Denmark indicated that consumer prices increased by 1.3% compared to the previous month. The core inflation rate remained steady at 2.3%, the same as in June. Price hikes in the hospitality sector, notably restaurants and hotels, continued to significantly influence the index. Additionally, holiday home rentals contributed notably during the summer travel season.
In July, the consumer price index reached 102.92, with 2025 serving as the base year (100). The rise in the index was partly driven by holiday home rentals and package holidays, which together contributed 1.24 percentage points to the monthly increase. Food prices added another 0.15 point. Conversely, categories such as clothing, hotel accommodation, and footwear experienced downward movements, collectively decreasing the monthly increase by 0.34 percentage points.
Rent costs alone contributed 0.55 percentage points to the annual inflation figure, marking the largest single positive influence. Holiday home rentals added 0.51 point, while fuel prices contributed 0.39 point. Electricity prices, on the other hand, decreased the annual inflation rate by 0.68 point. Food prices further lowered the rate by 0.26 point, and package holidays reduced it by 0.06 point. The combined effect of these shifts pushed the headline inflation below its June level.
Services continue to outpace goods
Prices for restaurants and hotels rose 8.1% compared to the previous year, representing the strongest growth among major consumer categories. Transport costs increased by 5.5%, while expenses for information and communication went up 4.6%. Education costs grew by 4.5%, and insurance along with financial services increased 2.9%. Conversely, prices for food and nonalcoholic beverages declined 1.6% over the same period. Households faced a 1.1% decrease in furnishings, equipment, and related services.
Compared to July 2025, service prices increased by 3.8%, whereas prices for goods fell by 0.7%. The primary driver of the 2.3% core inflation rate remains higher rents. No significant annual change was observed in housing, water, electricity, gas, or other fuels. Prices for health services rose 0.7%, and those for recreation, sport, and culture increased 0.8%. These figures illustrate a distinct disparity between the inflation trends in services and goods.
Harmonised inflation rate also shows a slowdown
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparison across European Union countries. While Denmark’s national CPI factors in owner-occupied housing through estimated rental values, the harmonised version excludes this component. In June, Denmark’s harmonised inflation was recorded at 1.8%. Other nations like Sweden registered 1.0%, and the Czech Republic reported 1.1%. Full EU inflation data for July has yet to be published.
The net price index increased by 2.6% year-over-year in July, a slight decrease from June’s 2.7%. This index removes indirect taxes and duties where applicable and accounts for subsidies that lower consumer prices. The harmonised index at fixed tax rates grew by 2.4% compared to July 2025. Statistics Denmark compiles the CPI based on roughly 23,000 prices across approximately 1,600 shops, firms, and institutions. The next consumer price report is scheduled for September 10.