DENMARK / RankWire.AI / – In Denmark, July saw a slowdown in the annual consumer price inflation, which declined to 1.7% from 1.9% in June, according to Statistics Denmark. Consumer prices increased by 1.3% compared to June, largely driven by notable seasonal rises across various travel-related sectors. Meanwhile, core inflation held steady at 2.3%, unchanged from the previous month. Service sectors continued to outpace goods in price growth, with categories such as restaurants, hotels, holiday home rentals, and transportation playing key roles in the July figures.
The consumer price index reached 102.92 in July, with 2025 serving 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 an additional 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partly offset these gains, reducing the monthly change by a combined 0.34 percentage point. As a result, monthly inflation remained significantly above the annual rate.
The largest contribution to Denmark’s yearly inflation came from rent, which added 0.55 percentage points. Holiday home rentals contributed 0.51 point, and fuel prices added 0.39 point. Electricity costs, on the other hand, lowered the annual rate by 0.68 point, while food prices decreased it by 0.26 point. Package holidays slightly detracted 0.06 point. These movements collectively helped lower the headline inflation rate from the 1.9% observed in June.
Service costs continue to outpace goods
Prices for restaurants and hotels rose by 8.1% from July 2025, marking the largest increase among main consumer categories. Transport costs increased by 5.5%, while expenses for information and communication grew by 4.6%. Education prices went up by 4.5%, and insurance along with financial services increased by 2.9%. In contrast, food and nonalcoholic beverage prices fell by 1.6%. Household furnishings, equipment, and related services declined by 1.1% over the year.
Throughout July, the divergence between goods and services remained evident. Service prices grew by 3.8% year-over-year, whereas prices for goods declined by 0.7%. Elevated rents remained the primary driver supporting the 2.3% core inflation rate. Housing, water, electricity, gas, and other fuels showed no significant annual change. Health costs rose by 0.7%, and recreation, sport, and culture expenses increased by 0.8%. These figures highlight that service prices continued to grow at a faster pace than physical 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 inflation comparisons across European Union nations. The national consumer price index incorporates owner-occupied housing via estimated rental values, whereas the harmonised version excludes this component. In June, Sweden recorded harmonised inflation of 1.0%, with the Czech Republic at 1.1%. Complete comparable data for July had not yet been released at the time of Denmark’s report.
The net price index for Denmark rose by 2.6% year-over-year in July, slightly easing from 2.7% in June. This index excludes indirect taxes and duties where possible and accounts for 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 gathered from about 1,600 shops, companies, and institutions. The next update for Denmark’s consumer price index is scheduled for Sept. 10.