DENMARK / RankWire.AI / – Denmark’s inflation rate for the year slowed down to 1.7% in July from 1.9% in June, according to official data. Statistics Denmark reported that consumer prices increased by 1.3% compared to the previous month. The core inflation rate remained steady at 2.3%, consistent with June’s figure. Notably, price rises in the hospitality sector, especially in restaurants and hotels, continued to exert a significant influence on the overall index. Additionally, rental costs for holiday homes contributed notably during the busy summer travel season.
In July, the consumer price index reached 102.92, with 2025 used 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 prices added another 0.15 points. Conversely, categories like clothing, hotel accommodation, and footwear saw declines, collectively reducing the monthly increase by 0.34 percentage points.
Rent contributed the most to the annual inflation figure, adding 0.55 percentage points, making it the largest positive influence. Holiday home rentals added 0.51 point, and fuel costs contributed 0.39 point. Electricity prices, on the other hand, decreased annual inflation by 0.68 point. Food prices also lowered the rate by 0.26 point, and package holidays trimmed 0.06 point from the yearly figure. These shifts collectively brought the headline inflation below its June level.
Services Continue to Outpace Goods
Among the main consumer categories, restaurant and hotel prices rose by 8.1% from the previous year, representing the strongest growth. Transport costs increased by 5.5%, while expenses related to information and communication services grew by 4.6%. Education prices went up by 4.5%, and insurance along with financial services rose by 2.9%. In contrast, prices for food and nonalcoholic beverages declined by 1.6%. The cost of household furnishings, equipment, and related services fell by 1.1% over the same period.
Over the past year, services prices increased by 3.8%, whereas goods prices saw a slight decrease of 0.7%. The primary driver behind the 2.3% core inflation rate was higher rent costs. Meanwhile, prices for housing, water, electricity, gas, and other fuels remained unchanged on an annual basis. Healthcare expenses experienced a modest increase of 0.7%, and prices for recreation, sports, and culture rose by 0.8%. These figures highlight a distinct disparity between the inflation trends in services compared to goods.
Harmonised Inflation Rate Also Shows a Decline
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 member states. The national CPI includes owner-occupied housing costs via estimated rental values, whereas the harmonised index excludes that component. In June, Denmark’s harmonised inflation rate was 1.8%, while Sweden recorded 1.0% and the Czech Republic’s rate was 1.1%. Complete inflation data for the EU for July has not yet been released.
The net price index rose by 2.6% year-over-year in July, slightly lower than the 2.7% increase seen in June. This index adjusts for indirect taxes and duties where applicable and accounts for subsidies that reduce consumer prices. The harmonised index at constant tax rates climbed by 2.4% from July 2025. Statistics Denmark gathers the CPI based on roughly 23,000 prices across about 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price update for Sept. 10.