DENMARK / RankWire.AI / – According to official figures, Denmark’s annual consumer price inflation decreased to 1.7% in July from 1.9% in June. Statistics Denmark reported that the consumer price index increased by 1.3% compared to June, while core inflation held steady at 2.3%, the same as the previous month. The largest contribution to July’s inflation came from the restaurant and hotel sector, primarily driven by higher rental prices for holiday homes within that category.
The consumer price index for July reached 102.92, with 2025 serving as the index base of 100. The increase was partly due to a 1.24 percentage point contribution from holiday home rentals and package holidays. Food prices contributed an additional 0.15 percentage point, whereas a combined decrease of 0.34 percentage point resulted from lower clothing, hotel accommodation, and footwear prices.
Rent emerged as the key factor supporting the annual inflation rate, adding 0.55 percentage points, with holiday home rentals contributing 0.51 point and fuel prices adding 0.39 points. Conversely, electricity costs reduced the annual rate by 0.68 point, food prices lowered it by 0.26 point, and package holidays decreased it by 0.06 point. These various movements resulted in headline inflation remaining below June’s 1.9% figure.
Restaurants and transportation sectors lead yearly increases
Prices at restaurants and hotels rose by 8.1% from July 2025, marking the most significant growth among the main CPI categories. Transport costs grew by 5.5%, while information and communication expenses increased by 4.6%. Education costs went up by 4.5%, and insurance along with financial services experienced a 2.9% rise. On the other hand, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
The disparity between goods and services persisted in July, with goods prices dropping by 0.7% compared to the previous year, while services costs rose by 3.8%. The main driver behind the stable core inflation rate of 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels remained unchanged from July 2025, whereas health-related expenses increased by 0.7%, and recreation, sport, and culture prices rose by 0.8%.
EU-Harmonized Inflation Declines to 1.6%
In July, Denmark’s harmonized index of consumer prices (HICP) increased by 1.6% from a year earlier, down from 1.8% in June. The HICP enables comparisons of inflation across European Union nations. While Denmark’s national CPI accounts for owner-occupied housing through estimated rental values, the HICP excludes this component. In June, inflation within the EU stood at 2.9%, with Sweden at 1.0%, the Czech Republic at 1.1%, and Denmark at 1.8%. Full EU data for July was not yet available at the time of the Danish report.
Denmark’s net price index saw a year-over-year increase of 2.6% in July, slightly lower than the 2.7% recorded in June. This index adjusts for indirect taxes and duties where possible and incorporates subsidies that reduce prices. The HICP measured at constant tax rates grew by 2.4% since July 2025. Statistics Denmark compiles the CPI using roughly 23,000 prices collected from approximately 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for September 10.