DENMARK / RankWire.AI / – Statistics Denmark announced that Denmark’s annual inflation rate slowed to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% from June, driven by notable seasonal rises in multiple travel-related sectors. The core inflation rate remained unchanged at 2.3% compared to the previous month. The growth in prices for services continued to surpass that of goods, with categories such as restaurants, hotels, holiday home rentals, and transport primarily influencing the July statistics.
The consumer price index stood at 102.92 in July, with the year 2025 used as the base year of 100. The rise in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase, while food added another 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partially offset these gains, reducing the monthly change by a combined 0.34 percentage point. This resulted in monthly inflation figures remaining well above the annual rate.
Rent was the primary contributor to Denmark’s annual inflation, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, and fuel contributed 0.39 point. Electricity prices, however, decreased the annual rate by 0.68 point, while food prices lowered it by 0.26 point. Package holidays subtracted another 0.06 point. The combined effect of these movements helped lower the headline inflation rate from the 1.9% level recorded in June.
Service costs continue to outperform goods
Prices for restaurants and hotels increased 8.1% from July 2025, making it the highest growth among key consumer categories. Transport prices rose 5.5%, while information and communication expenses went up 4.6%. Education costs climbed 4.5%, and insurance along with financial services increased by 2.9%. In contrast, food and nonalcoholic beverage prices declined 1.6%, and household furnishings, equipment, and related services fell 1.1% compared to the previous year.
The contrast between goods and services persisted in July, with services prices rising 3.8% year-over-year, whereas goods prices decreased by 0.7%. Elevated rents continue to be the main driver supporting the 2.3% core inflation rate. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Prices for health increased 0.7%, and recreation, sport, and culture costs went up 0.8%. These figures underscore that service costs are still rising at a faster pace than the prices of physical goods.
Harmonised inflation also shows a decline
Denmark’s harmonised index of consumer prices grew 1.6% from July 2025, down from 1.8% in June. This measure facilitates comparison of inflation rates across European Union countries. Denmark’s national consumer price index includes owner-occupied housing through estimated rental values, which the harmonised index excludes. In June, Sweden recorded harmonised inflation of 1.0%, while the Czech Republic’s figure was 1.1%. Complete comparative data for July were not yet available alongside Denmark’s release.
The net price index increased 2.6% year-over-year in July, easing from 2.7% in June. This index accounts for indirect taxes and duties where applicable and incorporates subsidies that reduce consumer prices. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the consumer price index from approximately 23,000 prices gathered across around 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.