DENMARK / RankWire.AI / – Official data revealed that Denmark’s annual inflation rate eased to 1.7% in July from 1.9% in June. Statistics Denmark explained that consumer prices experienced a 1.3% increase from the previous month. Meanwhile, core inflation remained steady at 2.3%, matching the June figure. Notably, price hikes in restaurants and hotels continued to be a significant driver of the overall index, and rentals of holiday homes also contributed strongly during the peak 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 contributed 1.24 percentage points to the monthly rise, with food prices adding another 0.15 point. Conversely, categories such as clothing, hotel accommodation, and footwear moved in the opposite direction, collectively reducing the monthly increase by 0.34 percentage points.
Rent costs alone contributed 0.55 percentage points to the annual inflation figure, making them the largest positive contributor. Holiday home rentals added 0.51 point, while fuel prices contributed 0.39 point. Electricity prices, on the other hand, served to lower the annual inflation by 0.68 point, with food prices reducing it further by 0.26 point. Package holidays slightly trimmed the yearly rate by 0.06 point. The combined movement in these categories resulted in headline inflation dipping below its June level.
Services continue to outperform goods in price increases
Prices for restaurants and hotels surged by 8.1% from the previous year, marking the strongest increase among major consumer sectors. Transport prices rose by 5.5%, while costs associated with information and communication services increased by 4.6%. Education expenses were up by 4.5%, and insurance as well as financial services saw a 2.9% rise. Conversely, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services decreased by 1.1% over the same period.
From July 2025, service prices increased by 3.8%, whereas goods prices dropped by 0.7%. The predominant factor driving the 2.3% core inflation rate was the higher rent costs. Overall, housing, water, electricity, gas, and other fuels showed no significant change on an annual basis. Prices in health rose by 0.7%, while recreation, sport, and culture saw a 0.8% increase. These figures underline a distinct divergence between the inflation trend in services and that of goods prices.
Harmonised inflation rate also shows a decline
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, compared to a 1.8% rise in June. This measure facilitates inflation comparisons across European Union member countries. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, whereas the harmonised measure excludes that component. In June, Denmark’s harmonised inflation rate was 1.8%, with Sweden at 1.0% and the Czech Republic at 1.1%. The complete EU inflation figures for July had not yet been published.
The net price index grew by 2.6% year-over-year in July, down from 2.7% in June. This index adjusts for indirect taxes, duties where applicable, and includes subsidies that lower consumer prices. The harmonised index at constant tax rates increased by 2.4% from July 2025. Statistics Denmark calculates the CPI based on approximately 23,000 prices from around 1,600 shops, companies, and institutions, with the next update scheduled for September 10.