DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Statistics Denmark noted a 1.3% month-on-month increase in consumer prices. The core inflation rate remained steady at 2.3%, consistent with June’s figure. These July statistics were influenced by notable fluctuations in travel, housing, energy, and food expenses within the consumer basket.
The consumer price index for July reached 102.92, with 2025 established as the base year at 100. The rise in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly CPI growth. Food prices added a further 0.15 percentage point. Conversely, clothing, hotel accommodations, and footwear collectively reduced the monthly change by 0.34 percentage point.
The primary driver of the annual inflation was rent, which contributed 0.55 percentage points to the July figure. Holiday home rentals added 0.51 point, while fuel prices contributed 0.39 point. Electricity prices, on the other hand, lowered the overall inflation rate by 0.68 point, representing the largest negative impact among the listed categories. Food prices decreased by 0.26 point, and package holidays subtracted 0.06 point from the annual rate.
Strongest annual growth observed in service sectors
Prices for restaurants and hotels increased by 8.1% compared to July 2025, marking the highest growth among main consumer categories. Transport costs rose by 5.5%, while information and communication prices went up by 4.6%. Education expenses increased by 4.5%, and insurance and financial services gained 2.9%. Prices for food and nonalcoholic beverages declined by 1.6%, whereas household furnishings, equipment, and related services fell by 1.1%.
Overall, services prices saw a 3.8% increase from the previous year, while goods prices declined by 0.7% over the same period. The main factor behind the 2.3% core inflation was higher rents. Meanwhile, prices for housing, water, electricity, gas, and other fuels remained stable overall. Health-related costs rose slightly by 0.7%, and recreation, sport, and culture prices increased by 0.8%.
Denmark’s harmonised inflation rate shows signs of easing
The harmonised index of consumer prices in Denmark increased by 1.6% from July 2025, down from 1.8% in June. This index allows for comparison of inflation trends across European Union member states. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. June data indicated harmonised inflation rates of 1.0% in Sweden and 1.1% in the Czech Republic.
In July, the net price index increased by 2.6% year-over-year, slightly lower than June’s 2.7%. The harmonised index at constant tax rates rose by 2.4% compared to the previous year. Statistics Denmark compiles the CPI based on approximately 23,000 prices gathered from about 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price report for September 10.