DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual consumer price inflation declined to 1.7% in July from 1.9% in June. The month saw consumer prices rise by 1.3% from June, mainly driven by sharp seasonal increases in several travel-related categories. Meanwhile, core inflation remained steady at 2.3%, unchanged from the previous month. The services sector continued to experience more robust price growth than goods, with restaurants, hotels, holiday home rentals, and transport among the key contributors to July’s figures.
The consumer price index hit 102.92 in July, with 2025 as the base year of 100. Holiday home rentals and package holidays together added 1.24 percentage points to the monthly increase, while food contributed an additional 0.15 point. Clothing, hotel accommodation, and footwear partially offset these increases, reducing the monthly change by a total of 0.34 percentage points. As a result, monthly inflation remained significantly above the annual rate.
Rent was the largest factor boosting Denmark’s annual inflation, adding 0.55 percentage points. 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 reduced the rate by 0.06 point. These movements collectively helped bring the headline inflation rate down from the 1.9% seen in June.
Service expenses continue to outpace goods
Prices for restaurants and hotels rose 8.1% from July 2025, marking the highest increase among major consumer categories. Transport costs increased by 5.5%, while information and communication expenses rose 4.6%. Education prices climbed 4.5%, and insurance and financial services gained 2.9%. In contrast, food and nonalcoholic beverage prices fell 1.6%. Household furnishings, equipment, and related services declined 1.1% compared to the previous year.
The divergence between goods and services remained evident in July. Service prices increased 3.8% year-over-year, while goods prices decreased 0.7%. Elevated rents continued to be the primary driver behind the 2.3% core inflation rate. Housing, water, electricity, gas, and other fuels showed no significant annual change. Health costs rose 0.7%, and recreation, sport, and culture increased 0.8%. These figures highlight that service costs continue to grow faster than physical goods prices.
Harmonised inflation rate also declines
Denmark’s harmonised index of consumer prices grew by 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union member states. The national consumer price index includes owner-occupied housing via estimated rental values, whereas the harmonised version excludes that component. In June, Sweden’s harmonised inflation was 1.0%, and the Czech Republic reported 1.1%. Complete comparative data for July was not yet available alongside the Danish figures.
The net price index increased 2.6% year-over-year in July, slightly down from 2.7% in June. This index adjusts for indirect taxes and duties where possible, adding subsidies that lower consumer prices. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark calculates the consumer price index based on about 23,000 prices collected from roughly 1,600 shops, companies, and institutions. The next update is scheduled for Sept. 10.