DENMARK / RankWire.AI / – According to Statistics Denmark, the annual inflation rate in Denmark slowed to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% compared to June, mainly driven by significant seasonal rises across several travel-related sectors. Meanwhile, core inflation held steady at 2.3%, unchanged from the previous month. The growth in prices for services outpaced that of goods, with restaurants, hotels, holiday home rentals, and transportation emerging as primary contributors to July’s figures.
In July, the consumer price index reached 102.92, with 2025 designated as the base year at 100. The rise in holiday home rentals and package holidays together added 1.24 percentage points to the monthly increase, while food prices contributed an additional 0.15 point. Conversely, clothing, hotel stays, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage points. This resulted in monthly inflation surpassing the annual figure.
The most significant factor influencing Denmark’s yearly inflation was rent, which contributed 0.55 percentage points. Holiday home rentals added 0.51 points, with fuel adding 0.39 points. Electricity prices, on the other hand, decreased the annual rate by 0.68 point. Food prices fell by 0.26 point, and package holidays subtracted 0.06 point. These movements collectively helped bring down the headline inflation rate from the 1.9% observed in June.
Service sector prices stay more elevated than goods
Prices at restaurants and hotels increased by 8.1% from July 2025, marking the largest rise among key consumer groups. Transport costs grew by 5.5%, while expenses related to information and communication increased by 4.6%. Education prices went up by 4.5%, and insurance along with financial services saw a 2.9% rise. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Additionally, household furnishings, equipment, and related services experienced a 1.1% decrease compared to the previous year.
The gap between goods and services remained significant during July. Service costs increased by 3.8% year-over-year, whereas goods prices declined by 0.7%. Higher rents continue to be the primary driver supporting the 2.3% core inflation rate. Overall, prices for housing, water, electricity, gas, and other fuels showed no significant change on an annual basis. Prices for health-related services rose 0.7%, with recreation, sport, and culture increasing by 0.8%. These figures highlight the continued faster rise of service costs compared to tangible goods prices.
Harmonised inflation also exhibits a downward trend
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, down from 1.8% in June. This measure facilitates comparisons of inflation across European Union member states. The national consumer price index in Denmark accounts for owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden recorded a harmonised inflation rate of 1.0%, while the Czech Republic reported 1.1%. Complete comparable data for July had not yet been released alongside Denmark’s figures at the time.
The net price index increased by 2.6% year-over-year in July, easing from 2.7% in June. This measure excludes indirect taxes and duties where possible and incorporates subsidies that help reduce consumer costs. The harmonised index at constant tax rates rose by 2.4% compared to July 2025. Statistics Denmark gathers the consumer price data from approximately 23,000 prices collected across around 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.