DENMARK / RankWire.AI / – Statistics Denmark has revealed that Denmark’s annual inflation rate for consumers slowed to 1.7% in July from 1.9% in June. The month saw a 1.3% rise in consumer prices compared to June, driven primarily by sharp seasonal increases across various travel-related sectors. The core inflation rate remained stable at 2.3%, consistent with the previous month. Notably, services outpaced goods in price growth, with categories like restaurants, hotels, holiday home rentals, and transportation playing key roles in shaping July’s inflation figures.
The consumer price index reached 102.92 in July, with the year 2025 serving as the base year of 100. The combined impact of holiday home rentals and package holidays added 1.24 percentage points to the monthly inflation figure, while food contributed an additional 0.15 percentage point. Conversely, categories such as clothing, hotel stays, and footwear partially offset these increases, collectively reducing the monthly change by 0.34 percentage point. As a result, the monthly inflation rate remained significantly above the annual rate.
Rent was the primary contributor to Denmark’s annual inflation, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, with fuel prices accounting for 0.39 point. Electricity prices, however, led to a decrease of 0.68 point in the annual rate, while food prices lowered it by 0.26 point. Package holidays also subtracted 0.06 point. These fluctuations collectively contributed to lowering the overall inflation from the 1.9% level observed in June.
Service Sector Continues to Outpace Goods in Price Growth
Prices for restaurants and hotels surged 8.1% from July 2025, marking the largest increase among major consumer categories. Transport costs increased by 5.5%, while expenses related to information and communication rose by 4.6%. Education prices grew by 4.5%, with insurance and financial services advancing 2.9%. In contrast, food and nonalcoholic beverages declined 1.6%, and household furnishings, equipment, and related services fell 1.1% from a year earlier.
The disparity between goods and services remained clear in July, with services prices rising 3.8% year-over-year, while goods prices declined 0.7%. Rents continued to be the main driver behind the 2.3% core inflation rate. The index showed no overall annual change in housing, water, electricity, gas, and other fuels. Prices for health services increased by 0.7%, and recreation, sport, and culture rose by 0.8%, emphasizing that service costs are still rising faster than those for tangible goods.
Lower Figures for Harmonised Inflation in Denmark
Denmark’s harmonised consumer price index increased 1.6% from July 2025, down from 1.8% in June. This measure facilitates inflation comparisons across European Union countries. While Denmark’s national consumer price index includes owner-occupied housing via estimated rental values, the harmonised version excludes that component. In June, Sweden recorded a harmonised inflation rate of 1.0%, and the Czech Republic reported 1.1%, though complete figures for July were not yet available when the Danish data was released.
The net price index rose by 2.6% in July compared to the same month in 2025, easing from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable and accounts for subsidies that lower consumer prices. The harmonised index at constant tax rates increased by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 price points collected across about 1,600 shops, companies, and institutions. The next update for Denmark’s consumer price index is scheduled for Sept. 10.