DENMARK / RankWire.AI / – Official data revealed that Denmark’s annual inflation rate fell to 1.7% in July from 1.9% in June. Statistics Denmark also indicated a 1.3% rise in consumer prices on a monthly basis. The core inflation rate remained steady at 2.3%, consistent with June’s figure. These July statistics reflected significant shifts in travel, housing, energy, and food expenses within the consumer basket.
In July, the consumer price index reached 102.92, with 2025 designated as the base year (100). The increase in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly CPI growth. Food prices added a further 0.15 percentage point. Conversely, costs related to clothing, hotel stays, and footwear collectively reduced the monthly change by 0.34 percentage point.
Rent continued to be the dominant factor driving annual inflation, accounting for a 0.55 percentage point increase in the July figure. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Electricity prices exerted the largest negative influence, reducing the annual inflation rate by 0.68 point. Food prices decreased by 0.26 point, and package holidays subtracted 0.06 point from the overall rate.
Strongest annual growth observed in service expenses
Prices for restaurants and hotels rose 8.1% compared to July 2025, marking the highest increase among key consumer categories. Transport costs increased by 5.5%, while information and communication services grew 4.6%. Education expenses went up 4.5%, and insurance and financial services rose 2.9%. Meanwhile, prices for food and nonalcoholic beverages dropped 1.6%, and household furnishings, equipment, and related services declined 1.1%.
Service prices overall increased by 3.8% from the previous year, whereas prices for goods saw a decrease of 0.7% over the same period. The main driver behind the 2.3% core inflation rate remained higher rents. Prices for housing, water, electricity, gas, and other fuels showed no significant annual change. Health-related costs rose 0.7%, while prices for recreation, sport, and culture increased by 0.8%.
Denmark’s harmonised inflation rate shows signs of moderation
The harmonised index of consumer prices in Denmark increased by 1.6% from July 2025, down from 1.8% in June. This index offers a standardized comparison of inflation levels across the European Union member countries. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden reported a harmonised inflation of 1.0%, and the Czech Republic registered 1.1%.
In July, the net price index increased by 2.6% year-over-year, slightly lower than the 2.7% seen in June. The harmonised index at constant tax rates grew by 2.4% from the previous year. Statistics Denmark compiles the CPI based on roughly 23,000 prices gathered from approximately 1,600 shops, businesses, and institutions. The agency’s next consumer price report is scheduled for September 10.
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