DENMARK / RankWire.AI / – According to official data from Statistics Denmark, Denmark’s annual inflation rate declined to 1.7% in July from 1.9% in June. The consumer price index increased by 1.3% compared to June. The core inflation rate remained steady at 2.3%, showing no change from the previous month. Notably, restaurants and hotels contributed the most to July’s inflation figure, primarily driven by rising holiday home rental costs within that category.
The consumer price index for July reached 102.92, with 2025 designated as the base year with an index value of 100. The monthly increase was partly due to holiday home rentals and package holidays, which together added 1.24 percentage points. Food prices contributed an additional 0.15 percentage point. Conversely, decreases in clothing, hotel accommodation, and footwear prices offset some of the increase, collectively reducing the monthly rise by 0.34 percentage point.
Regarding the annual inflation rate, rent was the largest positive contributor, adding 0.55 percentage point. Holiday home rentals and fuel added 0.51 and 0.39 points, respectively. Electricity prices, however, detracted 0.68 point from the overall rate. Food costs lowered the rate by 0.26 point, while package holidays reduced it by 0.06 point. The combined effect of these movements resulted in the headline inflation rate falling below June’s 1.9% reading.
Leading sectors in yearly inflation include restaurants and transportation
Prices at restaurants and hotels increased by 8.1% from July 2025, representing the strongest gain among the main CPI categories. Transport costs rose by 5.5%, while prices for information and communication services grew by 4.6%. Education expenses went up 4.5%, and insurance and financial services saw a 2.9% increase. In contrast, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
The disparity between goods and services prices remained significant in July. Goods prices were 0.7% lower than the previous year, while services prices increased by 3.8%. The main driver behind the steady core inflation rate of 2.3% was higher rent prices. Overall, prices for housing, water, electricity, gas, and other fuels remained unchanged compared to July 2025. Additionally, health-related prices increased by 0.7%, and recreation, sport, and culture expenses grew by 0.8%.
EU harmonised inflation rate decreases to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) experienced a 1.6% rise from the same month in the previous year, down from 1.8% in June. The European Union uses the HICP as a standard measure for comparing inflation across member states. Denmark’s national CPI incorporates owner-occupied housing costs through estimated rental values, whereas the HICP does not include this component. EU-wide inflation in June stood at 2.9%, with Sweden recording 1.0%, the Czech Republic at 1.1%, and Denmark at 1.8%. Full EU inflation figures for July were not yet available at the time of the Danish release.
Denmark’s net price index increased by 2.6% year-over-year in July, slightly down from 2.7% in June. This measure accounts for indirect taxes and duties where applicable, and subtracts subsidies that help lower prices. The HICP at constant tax rates grew by 2.4% from July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices gathered across around 1,600 retail outlets, companies, and institutions. The next update on consumer prices is scheduled for September 10.