DENMARK / RankWire.AI / – Official data reveal that Denmark’s annual inflation rate slowed to 1.7% in July from 1.9% the previous month. Statistics Denmark indicated consumer prices increased by 1.3% compared to June. Core inflation remained steady at 2.3%, consistent with June’s figure. Notably, price hikes in restaurants and hotels persisted as significant factors influencing the index, with summer holiday home rentals also making a considerable impact during the peak travel season.
The consumer price index reached 102.92 in July, with 2025 serving as the base year (index 100). The combined effect of holiday home rentals and package holidays contributed 1.24 percentage points to the monthly growth, while food prices added 0.15 point. Conversely, categories like clothing, hotel accommodations, and footwear experienced declines, collectively reducing the monthly increase by 0.34 percentage points.
Rent was the largest individual contributor to the annual inflation, adding 0.55 percentage points. Holiday home rentals followed with 0.51 points, and fuel contributed 0.39 points. Electricity prices helped lower the annual rate by 0.68 point, with food prices reducing it by an additional 0.26 point. Package holidays trimmed 0.06 point from the annual figure. These shifts brought the headline inflation rate below its June level.
Services continue to grow faster than goods
Prices for restaurants and hotels increased by 8.1% year-over-year, marking the strongest growth among primary consumer categories. Transport costs rose 5.5%, while expenses for information and communication went up 4.6%. Education prices saw a 4.5% increase, and insurance and financial services gained 2.9%. On the other hand, food and nonalcoholic beverage costs dropped by 1.6% over the same period, and household furnishings and related services declined 1.1%.
In the year to July 2025, service prices increased by 3.8%, whereas goods prices decreased by 0.7%. Elevated rents remained the main driver behind the core inflation rate of 2.3%. The index for housing, water, electricity, gas, and other fuels remained unchanged overall. Prices for health services rose 0.7%, while recreation, sports, and culture costs increased by 0.8%. The data clearly demonstrate a significant disparity between service inflation and goods prices.
Harmonised inflation rate also shows a decline
Denmark’s harmonised consumer price index increased by 1.6% compared to July 2025, down from 1.8% in June. This indicator facilitates cross-country inflation comparisons within the European Union. Denmark’s national CPI accounts for owner-occupied housing via estimated rental values, while the harmonised version omits this component. In June, the harmonised inflation rate was 1.8%. Other EU countries like Sweden and the Czech Republic recorded 1.0% and 1.1%, respectively. The complete EU inflation data for July had not yet been published.
The net price index increased by 2.6% year-over-year in July, slightly below June’s 2.7%. This measure adjusts for indirect taxes and duties where possible and considers subsidies reducing consumer costs. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the CPI from roughly 23,000 prices collected across about 1,600 shops, firms, and institutions. The next update is scheduled for September 10.