DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% from June, driven largely by sharp seasonal rises in several travel-related sectors. The core inflation rate stayed steady at 2.3%, showing no change from the previous month. Prices for services continued to grow more quickly than those for goods. Key contributors to the July figures included restaurants, hotels, holiday home rentals, and transportation services.
The consumer price index hit 102.92 in July, with 2025 set as the base year of 100. The rise was partly due to holiday home rentals and package holidays, which together added 1.24 percentage points to the monthly increase. Food prices contributed an additional 0.15 percentage point. In contrast, categories like clothing, hotel accommodations, and footwear partially offset these gains, decreasing the monthly change by a combined 0.34 percentage point. As a result, monthly inflation significantly surpassed the annual rate.
Rent was the primary factor behind Denmark’s annual inflation, contributing 0.55 percentage points. Holiday home rentals added 0.51 point, and fuel contributed 0.39 point. Conversely, electricity prices lowered the annual rate by 0.68 point, and food costs reduced it by 0.26 point. Package holidays also subtracted 0.06 point. These movements collectively influenced the overall inflation figure, reducing it from the 1.9% level recorded in June.
Service prices continue to outpace goods in growth
Prices for restaurants and hotels increased by 8.1% from July 2025, making it the fastest-growing segment among major consumer categories. Transport prices advanced by 5.5%, while costs for information and communication rose 4.6%. Education prices grew by 4.5%, and insurance and financial services increased 2.9%. Conversely, food and nonalcoholic beverages saw a decline of 1.6%, and household furnishings, equipment, and related services decreased by 1.1% compared to the previous year.
The gap between goods and services remained stark during July. Service prices rose by 3.8% from a year earlier, while the prices of goods fell by 0.7%. The main driver for the 2.3% core inflation rate was higher rents. Prices for housing, water, electricity, gas, and other fuels showed no overall annual change. Prices for health services increased by 0.7%, and recreation, sports, and culture costs went up by 0.8%. The data clearly indicates that service costs continue to grow faster than prices for tangible goods.
Harmonised inflation also declines in July
Denmark’s harmonised index of consumer prices grew by 1.6% from July 2025, a decrease from 1.8% in June. This measure facilitates inflation comparisons across European Union countries. Denmark’s national consumer price index includes owner-occupied housing via estimated rental values, but the harmonised index excludes this component. In June, Sweden reported harmonised inflation of 1.0%, while the Czech Republic posted 1.1%. Complete comparable figures for July were not yet available when the Danish figures were released.
The net price index increased by 2.6% year-over-year in July, down from 2.7% in June. This index removes indirect taxes and duties where applicable and adds subsidies that lower consumer costs. The harmonised index at constant tax rates showed an increase of 2.4% from July 2025. Statistics Denmark calculates the consumer price index based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.