DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Consumer prices experienced a 1.3% rise from June, driven mainly by notable seasonal increases in several categories related to travel. Meanwhile, core inflation held steady at 2.3%, the same as the previous month. The growth in services continued to outpace that of goods, with restaurants, hotels, holiday home rentals, and transport among the leading contributors to July’s figures.
In July, the consumer price index reached 102.92, 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 increase, while food contributed an additional 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. As a result, monthly inflation remained well above the annual rate.
Rent was the primary driver of Denmark’s annual inflation, contributing 0.55 percentage point. Holiday home rentals and fuel added 0.51 and 0.39 points respectively. Conversely, electricity prices lowered the annual rate by 0.68 point, food prices decreased by 0.26 point, and package holidays subtracted another 0.06 point. These combined movements helped bring the headline inflation rate down from the 1.9% registered in June.
Prices for services continue to outpace goods
Prices at restaurants and hotels increased by 8.1% from July 2025, marking the largest rise among the main consumer categories. Transport costs grew by 5.5%, while information and communication expenses rose 4.6%. Education prices saw a 4.5% increase, and insurance and financial services gained 2.9%. In contrast, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services fell 1.1% compared to the previous year.
The disparity between goods and services remained significant in July. Service prices increased by 3.8% from a year earlier, whereas goods prices decreased by 0.7%. Elevated rents continued to be the main factor maintaining the 2.3% core inflation rate. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Prices for health rose by 0.7%, and recreation, sport, and culture grew by 0.8%. These figures indicate that service costs are still rising more rapidly than prices for physical goods.
Harmonised inflation also declines in July
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union countries. The Danish national consumer price index includes owner-occupied housing through estimated rental values, whereas the harmonised measure excludes that component. In June, Sweden recorded harmonised inflation of 1.0%, while the Czech Republic reported 1.1%. Complete comparable figures for July had not yet been released alongside Denmark’s data.
The net price index increased by 2.6% year over year in July, easing from 2.7% in June. This measure accounts for indirect taxes and duties where applicable and incorporates subsidies that reduce consumer prices. The harmonised index at constant tax rates rose by 2.4% from July 2025. Statistics Denmark calculates the consumer price index based on roughly 23,000 prices collected from approximately 1,600 shops, companies, and institutions. The next update for Denmark’s consumer price index is scheduled for Sept. 10.