DENMARK / RankWire.AI / – In July, Denmark’s annual inflation rate decelerated to 1.7% from 1.9% in June, according to official figures. The statistics from Denmark’s statistical office indicated a 1.3% rise in consumer prices on a monthly basis. Meanwhile, core inflation remained steady at 2.3%, the same as in June. The July data highlighted significant shifts in expenses related to travel, housing, energy, and food within the consumer basket.
As of July, the consumer price index reached 102.92, with 2025 set as the base year of 100. The increase in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly CPI growth, while food prices added a further 0.15 percentage point. On the other hand, clothing, hotel accommodations, and footwear collectively reduced the monthly variation by 0.34 percentage point.
Looking at the components of inflation, rent persisted as the largest factor in boosting the annual rate, accounting for 0.55 percentage points of the July increase. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity prices, however, lowered the annual inflation rate by 0.68 point, making it the largest negative influence among the listed items. Food costs decreased the rate by 0.26 point, and package holidays detracted 0.06 point from the overall figure.
Strongest yearly gains observed in service sectors
From July 2025, restaurant and hotel prices increased by 8.1%, representing the highest rise among major consumer categories. Transport prices went up by 5.5%, while information and communication costs rose 4.6%. Education expenses climbed 4.5%, and insurance along with financial services gained 2.9%. Conversely, prices for food and nonalcoholic beverages dropped 1.6%, and household furnishings, equipment, and related services declined 1.1%.
Overall, service prices grew 3.8% compared to the previous year, while the prices of goods decreased by 0.7% during the same period. The primary driver of the 2.3% core inflation rate remained higher rents. Prices for housing, water, electricity, gas, and other fuels showed no overall change over the year. Health-related costs increased by 0.7%, and prices for recreation, sport, and culture went up 0.8%.
Denmark’s harmonised inflation rate experiences a slowdown
In July, Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, a slowdown from 1.8% in June. This index provides a standardized basis for comparing inflation across European Union member states. The national CPI in Denmark incorporates owner-occupied housing via estimated rental values, whereas the harmonised measure excludes that element. Data from June revealed harmonised inflation rates of 1.0% in Sweden and 1.1% in the Czech Republic.
In July, the net price index rose by 2.6% year-over-year, slightly down from 2.7% in June. The harmonised index at constant tax rates increased by 2.4% compared to the previous year. Statistics Denmark gathers the CPI based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The agency has scheduled its next release of consumer price data for September 10.