DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s yearly inflation rate decreased to 1.7% in July from 1.9% in June. Consumer prices experienced a 1.3% rise from June, driven by notable seasonal increases across several travel-related segments. Meanwhile, core inflation held steady at 2.3%, showing no change from the previous month. The growth in services continued to surpass that of goods, with restaurants, hotels, holiday home rentals, and transportation among the key categories influencing July’s figures.
The consumer price index reached 102.92 in July, with 2025 set as the base year at 100. The increase was partly driven by holiday home rentals and package holidays, which together contributed 1.24 percentage points to the monthly rise. Food prices added an additional 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partly offset these gains, collectively reducing the monthly change by 0.34 percentage point. This resulted in monthly inflation remaining significantly above the annual rate.
The largest positive contribution to Denmark’s annual inflation came from rent, which added 0.55 percentage point. Holiday home rentals and fuel contributed 0.51 point and 0.39 point respectively, while electricity prices decreased the annual rate by 0.68 point. Food prices also lowered the annual rate by 0.26 point, and package holidays subtracted 0.06 point. The net effect of these movements helped lower the headline inflation rate from the 1.9% level recorded in June.
Service costs continue to outpace goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the highest rise among major consumer groups. Transport costs advanced 5.5%, while information and communication expenses rose 4.6%. Education prices increased by 4.5%, and insurance and financial services gained 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services experienced a 1.1% decrease from the previous year.
The disparity between goods and services persisted in July. Service prices rose by 3.8% compared to a year earlier, whereas prices for goods fell by 0.7%. Elevated rents remained the primary factor supporting the 2.3% core inflation rate. While housing, water, electricity, gas, and other fuels showed no overall change over the year, health costs increased by 0.7%, and recreation, sport, and culture expenses grew by 0.8%. These figures confirm that service prices continue to increase at a faster pace than physical goods.
Harmonised inflation declines alongside national figures
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, down from 1.8% in June. This index facilitates inflation comparisons across European Union member states. The Danish national consumer price index accounts for owner-occupied housing through estimated rental values, but the harmonised measure excludes this component. In June, Sweden’s harmonised inflation stood at 1.0%, while the Czech Republic reported 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 down from 2.7% in June. This measure adjusts for indirect taxes and duties where possible and includes subsidies that reduce consumer prices. The harmonised index at constant tax rates grew by 2.4% compared to July 2025. Statistics Denmark compiles the consumer price index from roughly 23,000 prices gathered across around 1,600 shops, companies, and institutions. The next update of Denmark’s consumer price data is scheduled for September 10.