DENMARK / RankWire.AI / – Official figures indicated that Denmark’s annual consumer price inflation decelerated to 1.7% in July from 1.9% in June. Statistics Denmark also revealed a 1.3% month-on-month increase in consumer prices, with core inflation holding steady at 2.3%, consistent with June’s rate. The July statistics reflected significant fluctuations in costs related to travel, housing, energy, and food across the consumer basket.
The consumer price index reached 102.92 in July, with the year 2025 designated as the base year of 100. Notably, holiday home rentals and package holidays contributed an additional 1.24 percentage points to the monthly CPI increase, while food added another 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 leading factor driving the annual inflation rate, accounting for an increase of 0.55 percentage point in July. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Electricity prices had the most substantial negative impact, decreasing the annual inflation rate by 0.68 point. Food costs lowered the rate by 0.26 point, and package holidays subtracted 0.06 point.
Strongest annual growth observed in service sector costs
Among the primary consumer categories, restaurant and hotel prices surged by 8.1% compared to July 2025, representing the largest increase. Transport prices rose by 5.5%, while costs associated with information and communication increased by 4.6%. Education expenses advanced by 4.5%, and insurance as well as financial services grew by 2.9%. Meanwhile, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services saw a decrease of 1.1%.
Overall, service prices registered a 3.8% rise from the previous year, whereas goods prices experienced a 0.7% decline over the same period. The primary contributor to the 2.3% core inflation was higher rent costs. The prices of housing, water, electricity, gas, and other fuels remained unchanged on an annual basis. Health-related expenses increased by 0.7%, and the categories of recreation, sport, and culture saw a 0.8% rise.
Harmonised inflation in Denmark shows a downward trend
Denmark’s harmonised index of consumer prices grew by 1.6% from July 2025, a slowdown from the 1.8% increase recorded in June. This index facilitates comparison of inflation rates across European Union member states. The national CPI of Denmark incorporates owner-occupied housing costs through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden’s harmonised inflation was reported at 1.0%, with the Czech Republic at 1.1%.
In July, the net price index increased by 2.6% year-over-year, slightly lower than the 2.7% observed in June. The harmonised index at constant tax rates experienced a 2.4% rise from the previous year. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The agency has scheduled its next release of consumer price data for September 10.