DENMARK / RankWire.AI / – Official data revealed that Denmark’s annual inflation rate for consumers eased to 1.7% in July from 1.9% in June. Statistics Denmark reported a 1.3% rise in the consumer price index since June. The core inflation rate remained steady at 2.3%, unchanged from the previous month. The primary contributors to July’s inflation were restaurants and hotels, with higher holiday home rental prices serving as the main driver within this sector.
The consumer price index for July reached 102.92, with 2025 designated as the base year with an index value of 100. Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase, while food prices added 0.15 point. Conversely, declines in clothing, hotel accommodation, and footwear prices collectively reduced the monthly increase by 0.34 percentage point.
Rent emerged as the largest positive influence on the annual inflation rate, contributing 0.55 percentage point. Holiday home rentals added 0.51 point, and fuel prices contributed 0.39 point. Electricity prices, however, reduced the annual rate by 0.68 point. Food costs decreased it by 0.26 point, and package holidays subtracted 0.06 point. These combined movements resulted in headline inflation falling below June’s 1.9% figure.
Restaurants and transport drive yearly increases
Prices in restaurants and hotels climbed by 8.1% from July 2025, representing the strongest growth among the main CPI categories. Transport costs increased by 5.5%, while information and communication prices grew by 4.6%. Education expenses rose 4.5%, with insurance and financial services up 2.9%. In contrast, prices for food and nonalcoholic beverages dropped 1.6%. Household furnishings, equipment, and related services experienced a decline of 1.1%.
The divergence between goods and services prices persisted in July. Goods prices were 0.7% lower than in the previous year, whereas service prices increased by 3.8%. The primary reason core inflation remained at 2.3% was higher rental costs. Overall, housing, water, electricity, gas, and other fuels showed no change from July 2025. Meanwhile, health-related prices rose by 0.7%, and recreation, sport, and culture increased by 0.8%.
EU-wide inflation measure dips to 1.6%
In July, Denmark’s harmonised index of consumer prices increased by 1.6% compared to the previous year, down from 1.8% in June. The European Union’s HICP offers a comparable metric for inflation across member countries. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, whereas the HICP does not. EU inflation rates in June stood at 2.9%, with Sweden at 1.0%, the Czech Republic at 1.1%, and Denmark at 1.8%. The full EU figures for July had not been released at the time of Denmark’s report.
In July, Denmark’s net price index increased by 2.6% year over year, down slightly from June’s 2.7%. This index excludes indirect taxes and duties where applicable and accounts for subsidies that lower prices. The HICP at constant tax rates rose by 2.4% from July 2025. Statistics Denmark calculates the CPI based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for September 10.