DENMARK / RankWire.AI / – Official figures revealed that Denmark’s annual inflation rate for consumer prices declined to 1.7% in July from 1.9% in June. The Statistics Denmark report indicated that the consumer price index increased by 1.3% since June, with core inflation remaining steady at 2.3%, unchanged from the previous month. The most significant contribution to July’s inflation came from restaurants and hotels, driven mainly by rising holiday home rental costs within that sector.
The consumer price index for July reached 102.92, with 2025 serving as the base year indexed at 100. Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly inflation, while food added a further 0.15 point. Conversely, decreases in clothing, hotel accommodation, and footwear prices collectively reduced the monthly increase by 0.34 percentage points.
Rent was the primary factor boosting annual inflation, adding 0.55 percentage point, followed by holiday home rentals with 0.51 point, and fuel with 0.39 point. Electricity prices, however, cut 0.68 point from the overall rate, and food prices lowered the inflation by 0.26 point, with package holidays subtracting 0.06 point. These combined movements resulted in headline inflation falling below June’s 1.9% reading.
Restaurants and transport drive yearly increases
Prices in restaurants and hotels surged 8.1% from July 2025, marking the strongest increase among the key CPI groups. Transport prices grew by 5.5%, while information and communication costs rose 4.6%. Education expenses increased 4.5%, and insurance and financial services climbed 2.9%. In contrast, prices for food and nonalcoholic beverages fell by 1.6%, and household furnishings, equipment, and related services declined 1.1%.
In July, the gap between goods and services remained significant, with goods prices dropping 0.7% year-over-year, whereas services prices increased 3.8%. The main reason core inflation stayed at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels prices remained unchanged from July 2025. Health-related costs rose by 0.7%, and recreation, sport, and culture costs increased by 0.8%.
EU harmonised inflation decreases to 1.6%
In July, Denmark’s harmonised index of consumer prices rose 1.6% compared to the previous year, down from 1.8% in June. The European Union HICP allows for comparable inflation measurement across member countries. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, which the HICP excludes. In June, the EU’s inflation rate was 2.9%, with Sweden at 1.0%, the Czech Republic at 1.1%, and Denmark at 1.8%. Full EU figures for July were not yet available at the time of Denmark’s release.
Denmark’s net price index increased 2.6% year-over-year in July, easing slightly from 2.7% in June. This measure excludes indirect taxes and duties where possible and accounts for subsidies that reduce prices. The HICP at constant tax rates rose by 2.4% since July 2025. According to Statistics Denmark, the CPI is derived from approximately 23,000 prices collected across about 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for Sept. 10.