DENMARK / RankWire.AI / – According to official data, Denmark’s inflation rate for the year slowed to 1.7% in July from 1.9% in June. Statistics Denmark reported that consumer prices increased by 1.3% from the month prior. The core inflation rate remained steady at 2.3%, consistent with the June figure. Notably, price hikes in restaurants and hotels continued to significantly influence the index, while rental costs for holiday homes also contributed strongly during the summer travel season.
In July, the consumer price index reached 102.92, with 2025 serving as the base year of 100. The combined impact of holiday home rentals and package holidays accounted for 1.24 percentage points of the monthly increase, while food prices contributed an additional 0.15 point. Conversely, categories such as clothing, hotel accommodations, and footwear moved in a downward direction, collectively reducing the monthly rise by 0.34 percentage points.
Rent was the largest positive contributor to the annual inflation rate, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Electricity prices, on the other hand, decreased annual inflation by 0.68 point. Food prices lowered the rate by another 0.26 point, and package holidays shaved off 0.06 point from the yearly reading. These movements collectively brought the headline inflation below its June level.
Services Continue to Outstrip Goods
Prices in restaurants and hotels grew by 8.1% compared to the previous year, marking the strongest increase among key consumer categories. Transport costs rose 5.5%, while expenses for information and communication went up 4.6%. Education prices saw a 4.5% rise, and insurance and financial services increased by 2.9%. Conversely, prices for food and nonalcoholic beverages fell 1.6%, and household furnishings, equipment, and related services declined by 1.1% over the same period.
From July 2025 to July 2025, services prices grew by 3.8%, whereas prices for goods decreased by 0.7%. The main driver behind the 2.3% core inflation rate was higher rents. There was no significant overall annual change in housing, water, electricity, gas, and other fuels. Health-related prices increased by 0.7%, while recreation, sport, and culture prices rose by 0.8%. The data highlights a clear disparity between the inflation rates for services and goods.
European Union Harmonised Inflation Shows a Decline
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, down from 1.8% in June. This indicator enables inflation comparisons across European Union member states. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the harmonised measure excludes that component. In June, the harmonised inflation rate for Denmark was 1.8%. In comparison, Sweden registered 1.0%, and the Czech Republic reported 1.1%. Complete EU inflation data for July had not yet been released.
The net price index rose by 2.6% year-over-year in July, slightly down from 2.7% in June. This measure excludes indirect taxes and duties where possible and accounts for subsidies that lower consumer costs. 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 across about 1,600 stores, companies, and institutions. The agency has scheduled its next consumer price report for September 10.