DENMARK / RankWire.AI / – According to official figures, Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Statistics Denmark indicated a 1.3% rise in consumer prices during the month. The core inflation rate remained steady at 2.3%, matching June’s figure. These July numbers were influenced by significant changes in travel, housing, energy, and food prices within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 as the base year (100). Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly CPI increase. Food prices added another 0.15 point. On the other hand, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 point.
Rent was the largest factor driving annual inflation, adding 0.55 percentage points to the July figure. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity prices lowered the yearly inflation by 0.68 point, the largest negative impact among the listed components. Food decreased the rate by 0.26 point, while package holidays subtracted 0.06 point.
Strongest annual increases seen in service costs
Prices at restaurants and hotels increased by 8.1% from July 2025, marking the highest rise among major consumer categories. Transport prices climbed 5.5%, while information and communication costs went up 4.6%. Education expenses rose 4.5%, and insurance and financial services gained 2.9%. Conversely, prices for food and nonalcoholic beverages declined 1.6%. Household furnishings, equipment, and related services dropped 1.1%.
Overall, service prices rose 3.8% compared to the previous year, whereas goods prices fell by 0.7%. Higher rent costs were the primary driver of the 2.3% core inflation rate. Prices for housing, water, electricity, gas, and other fuels did not change overall. Health-related prices increased by 0.7%, and costs for recreation, sport, and culture went up by 0.8%.
Denmark’s harmonised inflation rate shows a slowdown
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, down from 1.8% in June. This index allows for inflation comparison across European Union member states. Denmark’s national CPI includes owner-occupied housing based on estimated rental values, while the harmonised measure excludes this component. June data revealed harmonised inflation of 1.0% in Sweden and 1.1% in the Czech Republic.
In July, the net price index rose 2.6% year-over-year, slightly less than June’s 2.7%. The harmonised index at constant tax rates increased 2.4% compared to the previous year. Statistics Denmark gathers CPI data from roughly 23,000 prices across about 1,600 shops, companies, and institutions. Its next consumer price report is scheduled for Sept. 10.