DENMARK / RankWire.AI / – According to official data, 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. Meanwhile, core inflation remained steady at 2.3%, consistent with the June figure. Notably, price hikes in restaurants and hotels continued to significantly influence the index, with summer travel also boosting contributions from holiday home rentals.
The consumer price index reached 102.92 in July, based on 2025 as the index’s 100-year reference point. Holiday home rentals and package holidays together contributed an additional 1.24 percentage points to the monthly rise. Food prices added another 0.15 point. Conversely, categories such as clothing, hotel accommodation, and footwear saw a decline, reducing the overall monthly increase by a combined 0.34 percentage points.
Rent emerged as the largest positive factor, adding 0.55 percentage points to the annual inflation rate. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Electricity prices, however, reduced the annual inflation by 0.68 point. Food costs lowered the rate by 0.26 point, and package holidays decreased it by 0.06 point. These movements collectively caused the headline inflation to fall below its June level.
Services Prices Continue to Surpass Goods
Prices for restaurants and hotels increased by 8.1% from the previous year, making it the fastest-growing main consumer category. Transport costs rose 5.5%, while expenses related to information and communication grew 4.6%. Education prices increased by 4.5%, and insurance along with financial services saw a 2.9% rise. Meanwhile, prices for food and nonalcoholic beverages fell 1.6%, and household furnishings, equipment, and associated services declined by 1.1%.
Compared to July 2025, services prices went up 3.8%, whereas prices for goods decreased by 0.7%. The main driver behind the 2.3% core inflation rate was higher rents. There was no overall change in housing, water, electricity, gas, and other fuels. Prices for health increased by 0.7%, and recreation, sport, and culture rose 0.8%. These figures clearly highlight the disparity between service inflation and goods price fluctuations.
European Union’s Harmonised Inflation Rate Also Eases
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, compared to 1.8% in June. This measure facilitates inflation comparisons across European Union nations. Denmark’s national CPI considers owner-occupied housing through estimated rental values, while the harmonised version excludes this component. In June, the harmonised inflation rate stood at 1.8%. Sweden’s rate was 1.0%, and the Czech Republic reported 1.1%. Full EU inflation data for July has not yet been released.
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 factors in subsidies that lower consumer prices. At constant tax rates, the harmonised index rose 2.4% from July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices gathered from around 1,600 shops, companies, and institutions. The agency’s next consumer price update is scheduled for Sept. 10.