DENMARK / RankWire.AI / – In July, Denmark’s annual consumer price inflation slowed to 1.7% from 1.9% in June, according to data from Statistics Denmark. Consumer prices increased by 1.3% compared to June, driven largely by sharp seasonal rises in various travel-related sectors. Meanwhile, core inflation held constant at 2.3%, showing no change from the previous month. The growth in services prices continued to outpace that of goods, with categories such as restaurants, hotels, holiday home rentals, and transportation playing key roles in the July figures.
The consumer price index hit 102.92 in July, with 2025 set as the base year of 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly increase, with food adding a further 0.15 percentage point. Conversely, categories like clothing, hotel accommodation, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. As a result, monthly inflation remained significantly above the annual rate.
Rent was the primary driver of Denmark’s annual inflation, contributing 0.55 percentage point. Holiday home rentals added 0.51 point, and fuel increased the rate by 0.39 point. On the other hand, electricity prices lowered the annual rate by 0.68 point, food prices decreased it by 0.26 point, and package holidays subtracted 0.06 point. These movements collectively contributed to lowering the headline inflation from the 1.9% recorded in June.
Service costs continue to outpace goods
Prices for restaurants and hotels rose 8.1% from July 2025, marking the largest increase among key consumer categories. Transport prices went up by 5.5%, while costs for information and communication increased by 4.6%. Education prices experienced a 4.5% rise, and insurance along with financial services grew 2.9%. Conversely, food and nonalcoholic beverage prices fell 1.6%, and household furnishings, equipment, and related services declined 1.1% compared to last year.
The disparity between goods and services persisted in July. Service prices increased by 3.8% year-over-year, whereas goods prices declined by 0.7%. Elevated rents remained the main factor supporting the 2.3% core inflation rate. Housing, water, electricity, gas, and other fuels showed no significant overall yearly change. Prices for health services rose 0.7%, while recreation, sport, and culture costs increased by 0.8%. The data underscores that service prices continue to rise at a faster pace than those for physical goods.
Harmonised inflation also shows a decline
Denmark’s harmonised index of consumer prices grew by 1.6% from July 2025, down from 1.8% in June. This measure allows for cross-country inflation comparisons within the European Union. The Danish national consumer price index factors in owner-occupied housing through estimated rental values, whereas the harmonised index excludes this component. In June, Sweden recorded harmonised inflation of 1.0%, while the Czech Republic’s figure was 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, easing from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable, adding subsidies that reduce consumer costs. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 prices collected across around 1,600 shops, companies, and institutions. The next update of Denmark’s consumer price index is scheduled for Sept. 10.