DENMARK / RankWire.AI / – Statistics Denmark reported that Denmark’s yearly inflation rate decreased to 1.7% in July from 1.9% in June. The agency indicated that consumer prices increased by 1.3% compared to the previous month. Core inflation remained steady at 2.3%, consistent with the June figure. Notably, price hikes in restaurants and hotels continued to be a significant factor influencing the index. Additionally, holiday home rentals contributed strongly during the summer travel season.
The consumer price index reached 102.92 in July, with 2025 serving as the base year set at 100. The combined effect of holiday home rentals and package holidays added 1.24 percentage points to the monthly rise, while food prices contributed an extra 0.15 point. Conversely, categories such as clothing, hotel accommodation, and footwear experienced declines, collectively reducing the monthly increase by 0.34 percentage point.
Rent costs alone added 0.55 percentage points to the annual inflation rate, making it the leading positive contributor. Holiday home rentals contributed 0.51 point, with fuel adding another 0.39 point. Electricity prices, on the other hand, lowered the inflation rate by 0.68 point. Food prices decreased the rate by 0.26 point, and package holidays shaved off 0.06 point from the yearly figure. The combined movements across these categories resulted in headline inflation falling below its June level.
Service sector inflation continues to outpace goods
Prices for restaurants and hotels increased by 8.1% from the previous year, marking the strongest growth among main consumer categories. Transport costs rose 5.5%, while expenses for information and communication grew by 4.6%. Education prices went up by 4.5%, and insurance and financial services increased by 2.9%. In contrast, food and nonalcoholic beverages saw a 1.6% decline, and household furnishings, equipment, and related services fell 1.1% over the same period.
Prices for services increased by 3.8% from July 2025, whereas goods prices dipped 0.7%. Persistent higher rents remained the primary driver behind the 2.3% core inflation rate. Housing, water, electricity, gas, and other fuels showed no significant annual change. Healthcare costs rose by 0.7%, and prices for recreation, sport, and culture increased by 0.8%. The data clearly illustrate a notable divergence between service inflation and the movement in goods prices.
Harmonised CPI also shows a slowdown
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 member states. Denmark’s national CPI incorporates owner-occupied housing costs via estimated rental values, while the harmonised index excludes that component. In June, the harmonised inflation rate stood at 1.8%. Sweden reported 1.0%, and the Czech Republic registered 1.1%. At this time, comprehensive EU inflation data for July had not yet been released.
The net price index in Denmark increased by 2.6% year-over-year in July, down from 2.7% in June. This index excludes indirect taxes and duties where possible and factors in subsidies that lower consumer prices. The harmonised index at constant tax rates grew by 2.4% compared to July 2025. Statistics Denmark compiles the CPI based on roughly 23,000 prices collected from approximately 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price release for September 10.