DENMARK / RankWire.AI / – In July, Denmark experienced a slowdown in its annual consumer price inflation, decreasing to 1.7% from 1.9% in June, according to Statistics Denmark. The month saw a 1.3% rise in consumer prices compared to June, driven by notable seasonal increases in various travel-related categories. Meanwhile, core inflation remained stable at 2.3%, unchanged from the previous month. The services sector continued to display more robust price growth than goods, with restaurants, hotels, holiday home rentals, and transport being key contributors to the July figures.
The consumer price index reached 102.92 in July, with 2025 serving as the base year of 100. The increase was partly fueled by holiday home rentals and package holidays, which together contributed 1.24 percentage points to the monthly rise. Food prices added a further 0.15 percentage point. Conversely, categories such as clothing, hotel accommodation, and footwear mitigated these gains, collectively decreasing the monthly change by 0.34 percentage point. As a result, monthly inflation remained significantly above the annual rate.
The largest influence on Denmark’s annual inflation rate came from rent, which contributed 0.55 percentage point. Holiday home rentals added 0.51 point, and fuel prices contributed 0.39 point. On the other hand, electricity prices reduced the annual rate by 0.68 point, food prices lowered it by 0.26 point, and package holidays subtracted 0.06 point. These movements collectively helped lower the headline inflation rate from the 1.9% observed in June.
Service costs remain more resilient than goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the largest rise among major consumer categories. Transport prices grew by 5.5%, while costs related to information and communication rose 4.6%. Education prices saw an increase of 4.5%. Insurance and financial services gained 2.9%. In contrast, food and nonalcoholic beverage prices declined by 1.6%. Household furnishings, equipment, and related services decreased by 1.1% compared to the previous year.
The disparity between goods and services remained evident during July. Services prices rose 3.8% year over year, whereas goods prices fell 0.7%. The persistent rise in rents was the primary driver supporting the 2.3% core inflation rate. Meanwhile, housing, water, electricity, gas, and other fuels showed no significant annual change. Health-related prices increased by 0.7%, and recreation, sport, and culture costs went up by 0.8%. These data indicate that service expenses continue to outpace the rise in physical goods prices.
Harmonised inflation also decreases
Denmark’s harmonised consumer price index rose by 1.6% from July 2025, down from 1.8% in June. This index facilitates inflation comparisons among European Union nations. The national consumer price index includes owner-occupied housing based on estimated rental values, while the harmonised measure excludes that component. In June, Sweden reported harmonised inflation of 1.0%, and the Czech Republic recorded 1.1%. However, comprehensive 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, slightly less than the 2.7% rise seen in June. This index adjusts for indirect taxes and duties where applicable and accounts for subsidies that reduce consumer prices. The harmonised index at constant tax rates grew by 2.4% compared to 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 on Denmark’s consumer prices is scheduled for Sept. 10.