DENMARK / RankWire.AI / – Official data revealed that Denmark’s inflation rate for the year declined to 1.7% in July from 1.9% the previous month. According to Statistics Denmark, consumer prices increased by 1.3% compared to June. Meanwhile, core inflation remained steady at 2.3%, matching June’s figure. Price hikes in the hospitality sector, particularly restaurants and hotels, continued to be major contributors to the inflation index. Additionally, holiday home rentals showed a strong upward influence during the peak summer travel period.
The consumer price index for July was recorded at 102.92, with 2025 serving as the base year set at 100. The combined effect of holiday home rentals and package holidays added 1.24 percentage points to the monthly inflation figure, while food prices contributed an additional 0.15 point. Conversely, categories such as clothing, hotel accommodations, and footwear experienced a decline, collectively reducing the monthly increase by 0.34 percentage points.
Rent costs alone contributed 0.55 percentage points to the annual inflation rate, making it the most significant positive factor. Holiday home rentals and fuel added 0.51 and 0.39 points respectively, whereas electricity prices lowered the annual rate by 0.68 point. Food prices decreased the rate by 0.26 point, and package holidays shaved off 0.06 point from the yearly figure. These category movements collectively pushed the headline inflation below its June level.
Service sector prices continue to outpace those of goods
Prices for restaurants and hotels rose by 8.1% from the previous year, marking the strongest increase among the main consumer categories. Transport costs increased by 5.5%, while expenses related to information and communication grew by 4.6%. Education prices went up by 4.5%, with insurance and financial services increasing by 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1% over the same period.
In comparison to July 2025, service prices rose by 3.8%, whereas the prices for goods dropped by 0.7%. The primary driver behind the 2.3% core inflation rate was higher rent costs. The prices of housing, water, electricity, gas, and other fuels remained unchanged on an annual basis. Healthcare prices saw a modest increase of 0.7%, while recreation, sport, and culture prices rose by 0.8%. These figures clearly illustrate a notable divergence between service sector inflation and goods price trends.
The harmonised inflation rate also shows a decline
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, compared to 1.8% in June. This index facilitates cross-country inflation comparisons within the European Union. While Denmark’s national CPI accounts for owner-occupied housing via estimated rental values, the harmonised measure excludes this component. In June, Denmark’s harmonised inflation rate was at 1.8%, with Sweden reporting 1.0% and the Czech Republic at 1.1%. Complete inflation data for July across the EU has yet to be published.
The net price index, which adjusts for indirect taxes and duties where applicable and considers subsidies that lower consumer prices, increased by 2.6% year-over-year in July, slightly down from 2.7% in June. The harmonised index at constant tax rates rose by 2.4% compared to July 2025. Statistics Denmark derives the CPI from approximately 23,000 prices across around 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price update for Sept. 10.