DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate dropped to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% compared to June, driven mainly by sharp seasonal rises in several travel-related sectors. Meanwhile, core inflation remained stable at 2.3%, the same as the previous month. The prices of services continued to outpace those of goods, with categories such as restaurants, hotels, holiday home rentals, and transport playing significant roles in the July figures.
The consumer price index reached 102.92 in July, with 2025 as the base year of 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly rise, while food added another 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partially offset those increases, collectively reducing the monthly change by 0.34 percentage point. This resulted in monthly inflation remaining well above the annual rate.
Rent was the primary driver of Denmark’s yearly inflation, adding 0.55 percentage point, with holiday home rentals and fuel contributing 0.51 and 0.39 points respectively. Electricity prices, however, lowered the annual rate by 0.68 point, and food prices reduced it by 0.26 point. Package holidays also subtracted 0.06 point, and these movements collectively helped decrease the headline inflation rate from 1.9% observed in June.
Service Sector Continues to Outpace Goods
Prices for restaurants and hotels increased by 8.1% from July 2025, making this the largest rise among major consumer categories. Transport costs grew by 5.5%, while expenses for information and communication went up by 4.6%. Education prices increased by 4.5%, and insurance along with financial services rose by 2.9%. Conversely, the cost of food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services saw a 1.1% decrease from the previous year.
Throughout July, the gap between goods and services remained significant. Service prices increased by 3.8% year-over-year, whereas goods prices fell by 0.7%. Elevated rent levels were the main factor supporting the 2.3% core inflation rate, with housing, water, electricity, gas, and other fuels showing no overall annual change. Prices for health services rose by 0.7%, and recreation, sport, and culture costs increased by 0.8%. These figures indicate that service expenses continue to grow faster than those for tangible goods.
Harmonised Inflation Shows Slight Decline
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, down from 1.8% in June. This index facilitates inflation comparisons among European Union countries. Denmark’s national consumer price index includes owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden reported a harmonised inflation rate of 1.0%, and the Czech Republic saw 1.1%. Complete comparable figures for July were not yet available at the time of Denmark’s release.
The net price index increased by 2.6% year-over-year in July, a slight slowdown from 2.7% in June. This measure excludes indirect taxes and duties where possible and accounts for subsidies reducing consumer costs. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 prices collected from about 1,600 shops, companies, and institutions. The next update for Denmark’s consumer prices is scheduled for Sept. 10.