DENMARK / RankWire.AI / – Statistics Denmark reports that Denmark’s annual consumer price inflation slowed to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% from June, driven primarily by significant seasonal rises in various travel-related sectors. Meanwhile, the core inflation rate remained constant at 2.3%, showing no change from the previous month. The service sector continued to experience more substantial price increases than goods, with restaurants, hotels, holiday home rentals, and transportation being key contributors to the July figures.
The consumer price index hit 102.92 in July, with 2025 designated as the base year at 100. The combined impact of holiday home rentals and package holidays added 1.24 percentage points to the monthly rise, while food contributed an additional 0.15 percentage point. Conversely, categories such as clothing, hotel accommodations, and footwear partially offset these increases, collectively reducing the monthly change by 0.34 percentage point. This resulted in a monthly inflation rate significantly above the annual figure.
Rent was the primary factor boosting Denmark’s annual inflation rate, accounting for a 0.55 percentage point increase. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. In contrast, electricity prices led to a 0.68 point decrease, food prices lowered the rate by 0.26 point, and package holidays subtracted another 0.06 point. These movements collectively contributed to the decline in the overall inflation rate from 1.9% in June.
Service costs continue to outperform goods
Prices in restaurants and hotels rose by 8.1% compared to July 2025, making it the largest increase among major consumer groups. Transport costs increased by 5.5%, while expenses for information and communication rose by 4.6%. Education prices saw an increase of 4.5%, with insurance and financial services climbing 2.9%. Conversely, food and nonalcoholic beverage prices decreased by 1.6%. Prices for household furnishings, equipment, and related services declined 1.1% compared to the previous year.
Throughout July, the disparity between goods and services remained evident. Service prices grew by 3.8% year-over-year, while goods prices fell by 0.7%. The main driver of the 2.3% core inflation rate was persistent increases in rents. Although housing, water, electricity, gas, and other fuels showed no significant annual change, health costs increased by 0.7%, and recreation, sport, and culture expenses rose by 0.8%. The data underscores that service prices continue to rise at a faster pace than tangible goods.
Harmonised inflation also records a decline
Denmark’s harmonised index of consumer prices climbed 1.6% from July 2025, down from 1.8% in June. This indicator facilitates inflation comparisons across European Union nations. Denmark’s national consumer price index incorporates owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden’s harmonised inflation stood at 1.0%, and the Czech Republic recorded 1.1%. Complete comparable data for July was not yet available at the time of the Danish release.
The net price index increased by 2.6% year-over-year in July, slightly easing from 2.7% in June. This measure adjusts for indirect taxes, duties where applicable, and accounts for 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 roughly 23,000 prices collected from around 1,600 shops, companies, and institutions. The next update is scheduled for Sept. 10.