DENMARK / RankWire.AI / – According to official data, Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Statistics Denmark also indicated a 1.3% rise in consumer prices on a monthly basis. The core inflation rate held steady at 2.3%, unchanged from June. These July figures reflected significant shifts in costs related to travel, housing, energy, and food within the consumer basket.
The consumer price index (CPI) reached 102.92 in July, with 2025 designated as the base year of 100. The increase was partly driven by a 1.24 percentage point contribution from holiday home rentals and package holidays. 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.
Rent continued to be the primary factor pushing the annual inflation rate higher, contributing 0.55 percentage points to the July figure. Holiday home rentals accounted for 0.51 point, while fuel contributed 0.39 point. Electricity prices had the largest negative impact, decreasing the annual inflation rate by 0.68 point. Food prices lowered the rate by 0.26 point, and package holidays subtracted 0.06 point.
Fastest annual increases observed in service sectors
Prices in restaurants and hotels surged 8.1% from July 2025, representing the largest increase among key consumer categories. Transport prices rose by 5.5%, while information and communication costs grew 4.6%. Education expenses went up by 4.5%, and insurance and financial services increased by 2.9%. Conversely, prices for food and nonalcoholic beverages declined 1.6%, and household furnishings, equipment, and related services dropped 1.1%.
Overall, services prices grew 3.8% compared to the previous year, whereas prices for goods decreased by 0.7%. The main driver behind the 2.3% core inflation rate was higher rents. Meanwhile, housing, water, electricity, gas, and other fuels showed no significant annual price change. Prices for health services increased by 0.7%, and recreation, sport, and culture costs went up 0.8%.
Harmonised inflation rate in Denmark shows a downward trend
Denmark’s harmonised index of consumer prices experienced a 1.6% increase from July 2025, down from 1.8% in June. This index facilitates comparison of inflation rates across European Union member states. The national CPI, which incorporates owner-occupied housing via estimated rental values, differs from the harmonised measure that excludes this component. June data indicated harmonised inflation 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 down from 2.7% in June. The harmonised index at constant tax rates grew by 2.4% compared to the previous year. Statistics Denmark compiles the CPI based on roughly 23,000 price points collected across about 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price report for September 10.