DENMARK / RankWire.AI / – Official figures reveal Denmark’s annual inflation decreased to 1.7% in July from 1.9% in June. Statistics Denmark reported that the consumer price index increased by 1.3% from June. The core inflation rate remained at 2.3%, showing no change from the previous month. The largest contribution to July’s inflation came from restaurants and hotels, primarily driven by higher holiday home rental costs within that sector.
The consumer price index for July reached 102.92, with 2025 set as the index base of 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly increase. Food prices added another 0.15 percentage point. Conversely, decreases in clothing, hotel accommodation, and footwear prices collectively reduced the monthly inflation by 0.34 percentage point.
Rent was the most significant factor boosting annual inflation, contributing 0.55 percentage point. Holiday home rentals added 0.51 point, and fuel contributed 0.39 point. Electricity costs, on the other hand, lowered the annual rate by 0.68 point. Food prices reduced it by 0.26 point, while package holidays subtracted 0.06 point. These combined movements resulted in headline inflation falling below June’s 1.9% figure.
Restaurants and transportation lead yearly price increases
Prices in the restaurant and hotel sector increased by 8.1% from July 2025, representing the strongest growth among the main CPI groups. Transport costs rose by 5.5%, while information and communication prices grew by 4.6%. Education expenses went up by 4.5%, and insurance and financial services rose 2.9%. In contrast, prices for food and nonalcoholic beverages decreased by 1.6%. Household furnishings, equipment, and related services saw a decline of 1.1%.
In July, the disparity between goods and services inflation remained substantial. Goods prices were 0.7% lower than a year earlier, whereas services prices increased by 3.8%. The main reason core inflation stayed at 2.3% was higher rent costs. Overall, prices for housing, water, electricity, gas, and other fuels remained stable compared to July 2025. Additionally, health-related expenses rose by 0.7%, and recreation, sport, and culture costs increased by 0.8%.
EU-wide inflation based on harmonised index drops to 1.6%
Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% from a year earlier in July, down from 1.8% in June. The European Union uses the HICP as a comparable measure of inflation across its member states. Denmark’s national CPI accounts for owner-occupied housing through estimated rental values, while the HICP excludes this component. In June, the EU’s inflation rate was 2.9%. Sweden reported 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. The full EU July data was not yet available at the time of the Danish release.
Denmark’s net price index rose by 2.6% year-over-year in July, a slight decline from June’s 2.7%. This index removes indirect taxes and duties where possible and adds subsidies that lower prices. The HICP at constant tax rates increased by 2.4% from July 2025. Statistics Denmark calculates the CPI based on roughly 23,000 prices collected across about 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for Sept. 10.