DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate eased to 1.7% in July from 1.9% in June. Consumer prices experienced a monthly increase of 1.3%, driven by notable seasonal rises in various travel-related sectors. Meanwhile, core inflation remained steady at 2.3%, showing no change from the previous month. Price growth in services continued to outpace that of goods, with restaurants, hotels, holiday home rentals, and transportation playing key roles in shaping the July figures.
The consumer price index for July reached 102.92, with 2025 serving as the base year of 100. The combined impact of holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase. Food prices added another 0.15 percentage point, while clothing, hotel accommodation, and footwear offset these gains, collectively reducing the monthly change by 0.34 percentage point. This resulted in monthly inflation remaining significantly above the annual rate.
Rent emerged as the primary factor driving Denmark’s annual inflation, accounting for an increase of 0.55 percentage points. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Conversely, electricity prices caused a 0.68 point decrease in the annual rate, and food prices lowered it by 0.26 point. Package holidays subtracted another 0.06 point. These movements collectively helped bring the overall inflation rate down from the 1.9% recorded in June.
Service Costs Continue to Outpace Goods
Prices for restaurants and hotels rose by 8.1% from July 2025, marking the largest increase among major consumer categories. Transport costs grew by 5.5%, while expenses for information and communication increased by 4.6%. Education prices saw a 4.5% rise, and insurance and financial services increased by 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services experienced a 1.1% decrease compared to the previous year.
The disparity between goods and services remains significant as of July. Service prices increased by 3.8% year-over-year, whereas goods prices fell by 0.7%. Elevated rents continue to be the key factor supporting the 2.3% core inflation rate. While housing, water, electricity, gas, and other fuels showed no overall annual change, health prices increased by 0.7%, and recreation, sport, and culture expenses rose by 0.8%. These figures underscore that service costs continue to rise at a faster pace than physical goods prices.
Lower Movement in Harmonised Inflation
Denmark’s harmonised consumer price index increased by 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union nations. The national consumer price index incorporates owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden recorded a harmonised inflation rate of 1.0%, and the Czech Republic reported 1.1%. Complete comparable data for July was not yet available at the time of the Danish release.
The net price index increased by 2.6% year-over-year in July, easing from 2.7% in June. This index excludes indirect taxes and duties where possible and includes subsidies that lower consumer prices. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark compiles this data from roughly 23,000 prices collected across around 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.