DENMARK / RankWire.AI / – Official data revealed that Denmark’s inflation rate for the year decelerated to 1.7% in July from 1.9% in June. Statistics Denmark reported that consumer prices increased by 1.3% compared to 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 significantly influence the index. Additionally, holiday home rentals contributed strongly during the summer travel season.
In July, the consumer price index stood at 102.92, with 2025 set as the base year of 100. The rise in holiday home rentals and package holidays collectively added 1.24 percentage points to the monthly increase, while food prices contributed an additional 0.15 point. Conversely, categories like clothing, hotel accommodations, and footwear experienced declines, collectively reducing the monthly increase by 0.34 percentage points.
The largest positive contributor to the annual inflation rate was rent, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Electricity prices, however, lowered the annual inflation rate by 0.68 point, and food prices reduced it by another 0.26 point. Package holidays slightly trimmed 0.06 point from the annual figure. These shifts in category prices brought Denmark’s headline inflation below its June level.
Services Continue to Outpace Goods
Prices for restaurants and hotels rose by 8.1% compared to a year earlier, representing the sharpest increase among key consumer sectors. Transport costs increased by 5.5%, while expenses for information and communication rose by 4.6%. Education prices went up by 4.5%, and insurance along with financial services grew by 2.9%. On the other hand, prices for food and nonalcoholic beverages decreased by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
From July 2025, service prices rose by 3.8%, whereas the cost of goods declined by 0.7%. Elevated rents primarily drove the 2.3% core inflation rate. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Healthcare prices increased by 0.7%, and prices for recreation, sport, and culture grew by 0.8%. These figures clearly highlight a notable gap between service inflation and goods price variations.
Harmonised Inflation Rate Also Declines
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union member countries. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the harmonised index excludes that component. In June, Denmark’s harmonised inflation rate was 1.8%. Sweden reported a 1.0% increase, and the Czech Republic saw a 1.1% rise. Complete EU inflation data for July remains unavailable.
The net price index grew 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 increased by 2.4% from July 2025. Statistics Denmark calculates the CPI based on approximately 23,000 prices across about 1,600 shops, companies, and institutions. The next consumer price update is scheduled for September 10.