DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual consumer price inflation decreased to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% from June, driven mainly by significant seasonal jumps in various travel-related sectors. Meanwhile, core inflation stayed steady at 2.3%, unchanged from the previous month. The growth in services outpaced that of goods, with categories such as restaurants, hotels, holiday home rentals, and transport playing key roles in the July data.
The consumer price index for July reached 102.92, with 2025 as the base year at 100. Holiday home rentals and package holidays contributed a combined 1.24 percentage points to the monthly rise, while food added another 0.15 percentage point. Conversely, clothing, hotel accommodations, and footwear partially offset these increases, collectively reducing the monthly change by 0.34 percentage point. As a result, monthly inflation remained notably higher than the annual figure.
Rent was the primary contributor to Denmark’s yearly inflation, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Electricity prices decreased the annual rate by 0.68 point, and food prices lowered it by 0.26 point. Package holidays subtracted 0.06 point. These movements collectively helped lower the overall inflation rate from the 1.9% recorded in June.
Service sector prices remain elevated compared to goods
Prices for restaurants and hotels rose 8.1% from July 2025, representing the largest increase among major consumer categories. Transport prices climbed 5.5%, while costs for information and communication went up 4.6%. Education prices increased by 4.5%, and insurance and financial services grew 2.9%. Conversely, food and nonalcoholic beverages declined 1.6%. Household furnishings, equipment, and related services fell 1.1% compared to a year earlier.
The gap between goods and services persisted in July. Service costs rose by 3.8% annually, while the price of goods decreased by 0.7%. The main driver for the 2.3% core inflation rate remained higher rents. Prices for housing, water, electricity, gas, and other fuels showed no overall change year-over-year. Health expenses increased by 0.7%, and recreation, sport, and culture rose by 0.8%. These figures highlight that service costs continue to grow faster than physical goods prices.
Harmonised inflation also declines
Denmark’s harmonised index of consumer prices grew by 1.6% from July 2025, down from 1.8% in June. This measure facilitates cross-country inflation comparisons within the European Union. Denmark’s national consumer price index incorporates owner-occupied housing through estimated rental values, but the harmonised measure excludes this element. In June, Sweden recorded a harmonised inflation of 1.0%, while the Czech Republic’s was 1.1%. However, full July data for these countries was not yet available alongside Denmark’s release.
The net price index increased by 2.6% year-over-year in July, slightly lower than June’s 2.7%. This measure adjusts for indirect taxes and duties where applicable and accounts for subsidies that reduce consumer costs. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the consumer price index using roughly 23,000 prices gathered across about 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.