DENMARK / RankWire.AI / – According to official figures, Denmark’s annual consumer price inflation decreased to 1.7% in July from 1.9% the previous month. Statistics Denmark also reported a monthly rise in consumer prices of 1.3%. The core inflation rate remained steady at 2.3%, the same as in June. The July numbers reflected significant shifts in expenses related to travel, housing, energy, and food within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 serving as the base year of 100. The increase in the CPI was partly driven by holiday home rentals and package holidays, which together contributed 1.24 percentage points to the monthly rise. Food prices added another 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 percentage point.
Rent emerged as the dominant factor in the annual inflation rate, adding 0.55 percentage points to the July figure. Holiday home rentals contributed 0.51 point, while fuel prices added 0.39 point. Electricity costs were responsible for reducing annual inflation by 0.68 point, representing the most significant negative impact among the listed components. Food costs lowered the rate by 0.26 point, and package holidays subtracted 0.06 point from the overall increase.
Strongest annual increases observed in service sector prices
Prices for restaurants and hotels rose by 8.1% compared to July 2025, marking the most substantial increase among major consumer categories. Transport costs grew by 5.5%, while information and communication expenses increased 4.6%. Education costs went up by 4.5%, and insurance along with financial services gained 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
From a year earlier, service prices rose by 3.8%, whereas the prices for goods decreased by 0.7%. The main driver behind the 2.3% core inflation figure was the increase in rents. The overall prices for housing, water, electricity, gas, and other fuels showed no significant change over the year. Health-related prices increased by 0.7%, while costs associated with recreation, sport, and culture went up by 0.8%.
Denmark’s harmonised inflation rate shows signs of easing
Denmark’s harmonised index of consumer prices experienced a 1.6% rise from July 2025, down from 1.8% recorded in June. This index allows for a standardized comparison of inflation across European Union nations. The national CPI incorporates owner-occupied housing based on estimated rental values, while the harmonised measure excludes that component. In June, Sweden’s harmonised inflation stood at 1.0%, and the Czech Republic’s at 1.1%.
The net price index saw a 2.6% increase year-over-year in July, slightly lower than June’s 2.7%. When adjusted for taxes, the harmonised index increased 2.4% compared to the previous year. Statistics Denmark compiles the CPI using roughly 23,000 price observations collected from about 1,600 stores, businesses, and institutions. The agency has scheduled its next consumer price release for Sept. 10.
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