DENMARK / RankWire.AI / – Official data reveal that Denmark’s annual inflation rate declined 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. Core inflation remained steady at 2.3%, the same as in June. Price hikes in restaurants and hotels continued to significantly influence the overall index. Rental costs for holiday homes also contributed notably during the summer travel season.
The consumer price index reached 102.92 in July, with 2025 serving as the base year of 100. Together, holiday home rentals and package holidays added 1.24 percentage points to the monthly rise. Food prices accounted for an additional 0.15 point. Conversely, categories such as clothing, hotel accommodation, and footwear moved in the opposite direction, reducing the monthly increase by a total of 0.34 percentage point.
Rent prices contributed 0.55 percentage points to the annual inflation rate, making it the most significant positive factor. Holiday home rentals added 0.51 point, while fuel contributed 0.39 point. Electricity prices decreased annual inflation by 0.68 point. Food prices further lowered the rate by 0.26 point. Package holidays trimmed 0.06 point from the yearly figure. These movements in categories brought the headline inflation below its June level.
Services Continue to Outpace Goods
Prices for restaurants and hotels rose by 8.1% compared to a year earlier, marking the strongest growth among key consumer categories. Transport costs increased 5.5%, while expenses for information and communication went up 4.6%. Education prices increased 4.5%, and insurance and financial services gained 2.9%. Over the same period, food and nonalcoholic beverage prices declined 1.6%. Household furnishings, equipment, and related services fell 1.1%.
Service prices grew by 3.8% from July 2025, whereas goods prices dropped 0.7%. The main driver behind the 2.3% core inflation rate was higher rents. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Health prices increased by 0.7%, recreation, sport, and culture costs rose 0.8%. These figures clearly highlight the gap between service inflation and goods price movements.
Harmonised Inflation Rate Also Shows a Downward Trend
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 countries. Denmark’s national CPI accounts for owner-occupied housing through estimated rental values, while the harmonised version excludes that component. In June, Denmark’s harmonised inflation was 1.8%. Sweden recorded 1.0%, and the Czech Republic reported 1.1%. Complete EU inflation data for July has not yet been published.
The net price index increased by 2.6% year over year in July, down slightly from 2.7% in June. This index removes indirect taxes and duties where possible, and includes subsidies that lower consumer prices. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark calculates the CPI based on roughly 23,000 prices from about 1,600 shops, companies, and institutions. The next consumer price update is scheduled for September 10.