DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate dropped to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% from June, driven by notable seasonal jumps in various travel-related sectors. The core inflation rate remained at 2.3%, with no change from the previous month. Price increases in services outpaced those for goods, with restaurants, hotels, holiday home rentals, and transportation among the primary categories influencing July’s figures.
In July, the consumer price index reached 102.92, using 2025 as the base year of 100. Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly rise, with food adding another 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partially offset these gains, reducing the monthly change by a total of 0.34 percentage points. Despite this, monthly inflation remained significantly above the annual rate.
Rent was the largest factor supporting Denmark’s annual inflation rate, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, while fuel increased it by 0.39 point. Electricity prices decreased the annual rate by 0.68 point, and food costs lowered it by 0.26 point. Package holidays deducted another 0.06 point. These combined movements helped bring the headline inflation rate down from the 1.9% observed in June.
Service costs continue to outpace goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the highest growth among the main consumer categories. Transport prices rose 5.5%, and information and communication costs climbed 4.6%. Education expenses went up by 4.5%, while insurance and financial services increased 2.9%. In contrast, prices for food and nonalcoholic beverages fell by 1.6%. Household furnishings, equipment, and related services declined by 1.1% compared to the previous year.
The divergence between goods and services remained distinct in July. Service prices grew by 3.8% from a year earlier, whereas goods prices decreased by 0.7%. Elevated rents primarily supported the 2.3% core inflation rate. Prices for housing, water, electricity, gas, and other fuels showed no significant annual change. Health-related expenses rose by 0.7%, and recreation, sport, and culture costs increased by 0.8%. The data indicates that service prices continue to grow faster than those for tangible goods.
Harmonised inflation also exhibits a downward trend
Denmark’s harmonised index of consumer prices grew 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 index excludes this component. In June, Sweden recorded harmonised inflation of 1.0%, and the Czech Republic reported 1.1%. Complete comparable data for July was not yet available alongside Denmark’s figures.
In July, the net price index increased by 2.6% year-over-year, easing from 2.7% in June. This index adjusts for indirect taxes and duties where applicable and incorporates subsidies that lower consumer prices. The harmonised index at constant tax rates rose by 2.4% compared to July 2025. Statistics Denmark compiles the consumer price index using around 23,000 prices collected across approximately 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for September 10.