DENMARK / RankWire.AI / – Official figures revealed that Denmark’s annual inflation rate decelerated to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% on a monthly basis, according to Statistics Denmark. The core inflation rate remained steady at 2.3%, unchanged from June. The July statistics highlighted significant shifts in travel, housing, energy, and food prices within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 designated as the base year at 100. Contributing to the monthly CPI increase, holiday home rentals and package holidays accounted for 1.24 percentage points, while food added another 0.15 point. Conversely, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 percentage points.
Rent continued to be the primary driver of annual inflation, adding 0.55 point to the July figure. Holiday home rentals contributed 0.51 point, and fuel prices added 0.39 point. Electricity prices had the most negative impact, decreasing the annual inflation rate by 0.68 point. Food costs lowered the rate by 0.26 point, and package holidays detracted 0.06 point from the overall increase.
Strongest annual growth seen in service sector costs
Prices for restaurants and hotels rose by 8.1% compared to July 2025, representing the largest increase among key consumer categories. Transport expenses climbed 5.5%, while information and communication costs increased 4.6%. Education expenses advanced by 4.5%, with insurance and financial services up 2.9%. Food and nonalcoholic beverage prices dropped 1.6%, and household furnishings, equipment, and related services saw a decline of 1.1%.
From a year earlier, service prices rose by 3.8%, whereas goods prices decreased by 0.7%. Rising rents remained the dominant factor behind the core inflation rate of 2.3%. Prices for housing, water, electricity, gas, and other fuels showed no significant change on an annual basis. Healthcare costs increased by 0.7%, while recreation, sports, and culture prices went up by 0.8%.
Harmonised inflation rate in Denmark shows signs of easing
The harmonised index of consumer prices in Denmark rose by 1.6% compared to July 2025, down from 1.8% in June. This index offers a standardized measure for comparing inflation across European Union countries. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, while the harmonised measure excludes this component. In June, Sweden recorded a harmonised inflation rate of 1.0%, and the Czech Republic’s was 1.1%.
The net price index increased by 2.6% year-over-year in July, slightly lower than June’s 2.7%. The harmonised index at constant tax rates grew by 2.4% compared to the previous year. Statistics Denmark compiles the CPI based on roughly 23,000 prices gathered across approximately 1,600 shops, firms, and institutions. The next consumer price report is scheduled for September 10.