DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% compared to June, mainly due to sharp seasonal rises in several travel-related categories. The core inflation rate stayed at 2.3%, unchanged from the previous month. Service sectors continued to see stronger price increases than goods. Main contributors to the July figures included restaurants, hotels, holiday home rentals, and transport.
The consumer price index hit 102.92 in July, with 2025 as the base year of 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly rise. Food prices added another 0.15 percentage point. In contrast, clothing, hotel accommodation, and footwear partially offset these gains. These three categories reduced the monthly change by a total of 0.34 percentage point. As a result, monthly inflation remained significantly above the annual rate.
Rent was the largest positive factor influencing Denmark’s annual inflation, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Electricity prices lowered the annual rate by 0.68 point, and food prices reduced it by 0.26 point. Package holidays subtracted 0.06 point. These movements collectively helped lower the headline inflation rate from the 1.9% level seen in June.
Service costs remain more robust than goods
Prices at restaurants and hotels increased by 8.1% from July 2025, the highest growth among major consumer groups. Transport prices went up by 5.5%, while costs for information and communication increased by 4.6%. Education prices rose by 4.5%. Insurance and financial services saw a 2.9% increase. Meanwhile, food and nonalcoholic beverages declined 1.6%. Household furnishings, equipment, and related services fell 1.1% compared to a year earlier.
The gap between goods and services stayed distinct in July. Service prices rose by 3.8% year-over-year, whereas goods prices dropped by 0.7%. Higher rents were the main driver behind the 2.3% core inflation rate. Prices for housing, water, electricity, gas, and other fuels showed no overall change. Health-related costs increased by 0.7%, and recreation, sport, and culture costs rose by 0.8%. The data indicates that service expenses continue to outpace prices for tangible goods.
Harmonised inflation also declines
Denmark’s harmonised consumer price index rose by 1.6% from July 2025, down from 1.8% in June. This measure allows for inflation comparison across European Union countries. The Danish index includes owner-occupied housing costs via estimated rental values, but the harmonised index excludes this component. In June, Sweden recorded 1.0% harmonised inflation, while the Czech Republic reported 1.1%. Complete comparable figures for July were not yet available alongside the Danish release.
The net price index increased by 2.6% year-over-year in July, down from 2.7% in June. This measure excludes indirect taxes and duties where possible but 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 from roughly 23,000 prices collected across about 1,600 shops, companies, and institutions. The next update for Danish consumer prices is scheduled for Sept. 10.