DENMARK / RankWire.AI / – According to Statistics Denmark, the nation’s annual inflation rate eased to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% compared to June, largely driven by sharp seasonal spikes in several travel-related sectors. Meanwhile, core inflation remained unchanged at 2.3% from the previous month. The growth in services continued to outpace that of goods, with restaurants, hotels, holiday home rentals, and transport emerging as key contributors to the July figures.
The consumer price index reached 102.92 in July, with 2025 designated as the base year (100). The monthly rise was notably influenced by holiday home rentals and package holidays, which together contributed 1.24 percentage points. Food prices added another 0.15 percentage point. Conversely, categories like clothing, hotel accommodation, and footwear offset some of those increases, reducing the monthly change by a combined 0.34 percentage point. Despite this, monthly inflation remained significantly higher than the annual rate.
Rent played a major role in Denmark’s annual inflation, adding 0.55 percentage points. Holiday home rentals and fuel contributed 0.51 and 0.39 points respectively. Electricity prices, however, reduced the annual rate by 0.68 point, while food prices lowered it by 0.26 point. Package holidays subtracted 0.06 point, with these movements collectively helping to lower the headline inflation from the 1.9% observed in June.
Service costs continue to outpace goods prices
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the largest rise among primary consumer categories. Transport costs went up by 5.5%, while expenses for information and communication climbed 4.6%. Education costs grew by 4.5%, with insurance and financial services rising 2.9%. In contrast, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services experienced a 1.1% decrease year-over-year.
The divergence between goods and services persisted in July. Service prices rose by 3.8% compared to the previous year, whereas goods prices fell by 0.7%. Rents remained the primary driver supporting the 2.3% core inflation figure. Prices for housing, water, electricity, gas, and other fuels did not show any overall annual change. Health-related expenses increased by 0.7%, and recreation, sport, and culture costs went up by 0.8%. These figures demonstrate that service prices continued to grow faster than those for tangible goods.
Harmonised inflation also declines
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, down from 1.8% in June. This metric facilitates cross-country inflation comparisons within the European Union. The national consumer price index includes owner-occupied housing via estimated rental values, but this component is excluded in the harmonised measure. In June, Sweden recorded harmonised inflation of 1.0%, and the Czech Republic reported 1.1%. However, complete comparable data for July had not yet been released alongside Denmark’s report.
The net price index increased by 2.6% year-over-year in July, a slight decrease from 2.7% in June. This measure accounts for indirect taxes and duties where applicable and adds subsidies that reduce consumer prices. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The next update on Danish consumer prices is scheduled for Sept. 10.