DENMARK / RankWire.AI / – The latest data reveals that Denmark’s annual consumer price inflation slowed to 1.7% in July from 1.9% in June, according to Statistics Denmark. This decrease was driven by a 1.3% rise in consumer prices from June, mainly due to sharp seasonal increases across various travel-related categories. Meanwhile, core inflation remained unchanged at 2.3%, consistent with the previous month. The services sector continued to experience stronger price increases than goods, with restaurants, hotels, holiday home rentals and transport being among the primary contributors to the July figures.
In July, the consumer price index reached 102.92, with 2025 serving as the base year of 100. The rise was significantly influenced by holiday home rentals and package holidays, which together contributed 1.24 percentage points to the monthly increase. Food prices added another 0.15 percentage point, while clothing, hotel accommodation, and footwear partially offset these gains, reducing the monthly change by a combined 0.34 percentage point. As a result, monthly inflation remained well above the annual rate.
Rent was the largest factor boosting Denmark’s annual inflation, accounting for a 0.55 percentage point increase. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Conversely, electricity prices lowered the annual rate by 0.68 point, and food prices decreased it by 0.26 point. Package holidays pulled the annual rate down by an additional 0.06 point. These movements collectively helped ease the headline inflation rate from the 1.9% level recorded in June.
Service costs remain more elevated than goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the highest rise among key consumer categories. Transport costs grew by 5.5%, while expenses for information and communication went up by 4.6%. Education prices rose by 4.5%, and insurance and financial services increased by 2.9%. In contrast, food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell 1.1% from the previous year.
The gap between goods and services prices persisted during July, with service costs rising 3.8% year-over-year, whereas goods prices dropped 0.7%. The dominant factor supporting the 2.3% core inflation rate remained higher rents. While housing, water, electricity, gas, and other fuels showed no significant annual change, health costs increased by 0.7%, and recreation, sport, and culture expenses grew by 0.8%. These figures highlight that service prices continue to outpace those for physical goods.
Harmonised inflation rates also decline
Denmark’s harmonised index of consumer prices rose 1.6% from July 2025, down from 1.8% in June. This measure allows for comparison of inflation across European Union countries. The national consumer price index includes owner-occupied housing via estimated rental values, while the harmonised measure excludes this component. In June, Sweden reported harmonised inflation of 1.0%, and the Czech Republic recorded 1.1%. Complete comparable figures for July were not yet available alongside the Danish release.
In July, the net price index increased by 2.6% year-over-year, easing from 2.7% in June. This index removes indirect taxes and duties where possible and adds subsidies that reduce consumer costs. The harmonised index at constant tax rates increased by 2.4% from July 2025. Statistics Denmark constructs the consumer price index based on roughly 23,000 prices collected from approximately 1,600 shops, companies, and institutions. The next update on Danish consumer prices is scheduled for Sept. 10.