DENMARK / RankWire.AI / – According to Statistics Denmark, the annual inflation rate for consumers slowed to 1.7% in July from 1.9% in June. Consumer prices experienced a 1.3% rise since June, driven by notable seasonal increases in multiple travel-related sectors. Despite this, core inflation held steady at 2.3%, consistent with the previous month. The growth in services prices continued to surpass that of goods, with restaurants, hotels, holiday home rentals, and transportation being among the leading categories impacting July’s figures.
The consumer price index reached 102.92 in July, with 2025 serving as the base year of 100. The combined contribution of holiday home rentals and package holidays added 1.24 percentage points to the monthly growth, while food contributed an additional 0.15 percentage point. Conversely, categories such as clothing, hotel accommodation, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. The result was a monthly inflation rate significantly above the annual figure.
Rent emerged as the most significant factor positively influencing Denmark’s yearly inflation, accounting for 0.55 percentage points. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Electricity prices, however, decreased the annual rate by 0.68 point, and food prices lowered it by 0.26 point. Package holidays reduced the rate by 0.06 point. These movements collectively helped bring the headline inflation rate down from the 1.9% level recorded in June.
Service sector prices remain elevated compared to goods
Prices for restaurants and hotels increased by 8.1% from July 2025, representing the largest rise among key consumer categories. Transport costs grew by 5.5%, while expenses for information and communication climbed 4.6%. Education prices also saw a 4.5% increase, with insurance and financial services rising 2.9%. Conversely, food and nonalcoholic beverage prices declined by 1.6%. Household furnishings, equipment, and related services fell 1.1% from a year earlier.
The gap between goods and services remained evident in July. Service prices rose 3.8% compared to the previous year, whereas goods prices dropped 0.7%. Higher rents continued to be the primary factor supporting the 2.3% core inflation rate. Overall, housing, water, electricity, gas, and other fuels showed no significant annual change. Health-related prices increased by 0.7%, and costs for recreation, sport, and culture rose 0.8%. These data points underline that service costs are still increasing at a faster pace than those for physical goods.
Harmonised inflation figures also decline
Denmark’s harmonised index of consumer prices experienced a 1.6% increase from July 2025, slightly lower than the 1.8% recorded in June. This measure facilitates inflation comparisons across European Union member states. The national consumer price index includes owner-occupied housing through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden reported a harmonised inflation rate of 1.0%, and the Czech Republic’s figure was 1.1%. Complete comparable data for July were not yet available at the time of the Danish release.
The net price index for Denmark rose by 2.6% year-over-year in July, easing from 2.7% in June. This index removes indirect taxes and duties where possible and adds subsidies that lower consumer costs. The harmonised index, calculated at constant tax rates, increased by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 prices collected across approximately 1,600 shops, companies, and institutions. The next update for Denmark’s consumer prices is scheduled for Sept. 10.