DENMARK / RankWire.AI / – Statistics Denmark reports that the country’s annual inflation rate fell to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% compared to June, driven largely by significant seasonal spikes in several travel-related sectors. Meanwhile, the core inflation rate remained unchanged at 2.3%, consistent with the previous month. The growth in service prices outpaced that of goods, with categories such as restaurants, hotels, holiday home rentals, and transportation playing prominent roles in shaping the July data.
The consumer price index reached 102.92 in July, using 2025 as the base year of 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly rise, while food prices added another 0.15 percentage point. Conversely, clothing, hotel accommodations, and footwear partially offset these increases, collectively reducing the monthly change by 0.34 percentage point. As a result, monthly inflation remained significantly above the annual rate.
Rent was the largest contributor to Denmark’s annual inflation, accounting for an increase of 0.55 percentage point. Holiday home rentals added 0.51 point, and fuel contributed 0.39 point. Electricity prices, however, decreased the annual rate by 0.68 point, while food prices lowered it by 0.26 point. Package holidays detracted 0.06 point. These movements collectively influenced the overall inflation rate, bringing it down from the 1.9% level recorded in June.
Service costs remain higher than goods prices
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 for information and communication went up by 4.6%. Education expenses increased by 4.5%, and insurance as well as financial services rose by 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Additionally, household furnishings, equipment, and related services decreased by 1.1% compared to the previous year.
A clear gap persisted in July between goods and services prices, with service costs rising 3.8% year-over-year, while goods prices fell 0.7%. The main driver behind the 2.3% core inflation rate was higher rent costs. The prices of housing, water, electricity, gas, and other fuels showed no significant yearly change. Prices for health increased by 0.7%, and recreation, sport, and culture costs rose by 0.8%. These figures indicate that service prices continue to grow at a faster pace than those for tangible goods.
Harmonised inflation also declines
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union nations. The Danish national consumer price index accounts for owner-occupied housing through estimated rental values, whereas the harmonised version excludes that component. In June, Sweden recorded harmonised inflation of 1.0%, and the Czech Republic reported 1.1%. However, complete July data for these countries was not yet available at the time of the Danish release.
The net price index, which adjusts for indirect taxes and duties where possible and adds subsidies that lower consumer costs, increased by 2.6% year-over-year in July, down from 2.7% in June. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 price observations collected across about 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.