DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s yearly inflation rate for consumers slowed to 1.7% in July from 1.9% in June. Consumer prices experienced a 1.3% increase from June, mainly due to significant seasonal jumps in several travel-related sectors. Meanwhile, core inflation held steady at 2.3%, with no change from the previous month. The services sector continued to see stronger price hikes compared to goods, with restaurants, hotels, holiday home rentals, and transport emerging as key contributors to the July figures.
The consumer price index reached 102.92 in July, with 2025 designated as the base year of 100. The combined impact of holiday home rentals and package holidays contributed 1.24 percentage points to the monthly rise. Food prices added another 0.15 percentage point. In contrast, clothing, hotel stays, and footwear partly offset those increases, collectively reducing the monthly change by 0.34 percentage point. As a result, monthly inflation remained significantly above the annual rate.
The largest factor influencing Denmark’s annual inflation was rent, which contributed 0.55 percentage point. Holiday home rentals added 0.51 point, while fuel prices contributed 0.39 point. Conversely, electricity prices lowered the annual rate by 0.68 point. Food costs decreased by 0.26 point, and package holidays subtracted 0.06 point. These movements collectively helped bring the headline inflation rate down from the 1.9% recorded in June.
Service prices remain more resilient than goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the largest growth among major consumer categories. Transport costs rose by 5.5%, while information and communication expenses went up by 4.6%. Education prices increased by 4.5%, and insurance and financial services rose by 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services fell by 1.1% compared to the previous year.
During July, the disparity between goods and services remained evident. Service prices increased by 3.8% year-over-year, whereas goods prices decreased by 0.7%. The high rent levels continued to be the primary driver supporting the 2.3% core inflation rate. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Prices for health-related goods and services rose by 0.7%, while recreation, sports, and culture costs increased by 0.8%. These figures underline that service costs continue to outpace the growth of physical goods prices.
Harmonised inflation also declines
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, down from 1.8% in June. This indicator facilitates inflation comparisons among European Union member states. Denmark’s national consumer price index incorporates owner-occupied housing through estimated rental values, while the harmonised measure excludes this component. In June, Sweden recorded a harmonised inflation of 1.0%, and the Czech Republic reported 1.1%. Complete comparable figures for July were not yet available at the time of Denmark’s release.
The net price index increased by 2.6% year-over-year in July, a slight decrease from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable and adds subsidies that lower consumer prices. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 prices collected from about 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.