DENMARK / RankWire.AI / – In Denmark, official data revealed that the inflation rate for the year slowed down to 1.7% in July from 1.9% in June. The statistics agency, Statistics Denmark, reported that consumer prices experienced a 1.3% rise compared to the previous month. The core inflation rate remained steady at 2.3%, the same as in June. Notably, increases in prices at restaurants and hotels continued to significantly influence the overall index. Additionally, holiday home rentals played a prominent role during the busy summer travel season.
In July, the consumer price index reached 102.92, with 2025 serving as the base year of 100. The combined effect of holiday home rentals and package holidays contributed 1.24 percentage points to the monthly growth. Food prices added a further 0.15 point. Conversely, categories such as clothing, hotel accommodation, and footwear saw a decline, collectively reducing the monthly increase by 0.34 percentage point.
The largest single contributor to the annual inflation rate was rent, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Electricity prices, on the other hand, reduced the annual inflation figure by 0.68 point, and food prices lowered it by 0.26 point. Package holidays trimmed 0.06 point from the yearly rate. These shifts in category prices collectively brought the headline inflation below its June level.
Services Continue to Outperform Goods in Price Growth
Prices for restaurants and hotels surged 8.1% compared to the previous year, marking the highest increase among major consumer categories. Transport costs rose 5.5%, with information and communication expenses climbing 4.6%. Education prices went up 4.5%, and insurance along with financial services increased 2.9%. Meanwhile, prices for food and nonalcoholic beverages declined 1.6%. Household furnishings, equipment, and related services also fell, decreasing by 1.1% over the same period.
From July 2025 to July 2025, service prices saw an increase of 3.8%, whereas prices for goods decreased by 0.7%. The main driver behind the 2.3% core inflation rate was higher rents. The index for housing, water, electricity, gas, and other fuels remained unchanged on an annual basis. Health-related prices grew 0.7%, while recreation, sport, and culture saw a 0.8% rise. Overall, these data highlight a distinct disparity between inflation in services and goods prices.
Harmonised Inflation Rate Also Shows a Downward Trend
In Denmark, the harmonised index of consumer prices increased 1.6% from July 2025, compared to 1.8% in June. This measure facilitates comparisons of inflation rates across European Union member states. Denmark’s national CPI accounts for owner-occupied housing through estimated rental values, a component excluded in the harmonised measure. In June, the harmonised inflation rate for Denmark stood at 1.8%. Sweden reported 1.0%, and the Czech Republic registered 1.1%. Complete EU inflation data for July had not yet been released at the time.
The net price index rose 2.6% year-over-year in July, slightly down from 2.7% in June. This measure excludes indirect taxes and duties where applicable and accounts for subsidies that lower consumer prices. The harmonised index, at constant tax rates, increased 2.4% from July 2025. Statistics Denmark calculates the CPI based on around 23,000 prices collected from roughly 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price update for Sept. 10.