DENMARK / RankWire.AI / – Official figures indicated that Denmark’s yearly inflation rate slowed to 1.7% in July from 1.9% in June. Statistics Denmark also reported a 1.3% rise in consumer prices for the month. Meanwhile, core inflation remained steady at 2.3%, consistent with June’s figure. The July data reflected significant shifts in travel, housing, energy, and food prices within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 as the base year set at 100. Costs from holiday home rentals and package holidays contributed 1.24 percentage points to the monthly CPI rise, while food added another 0.15 point. Conversely, clothing, hotel stays, and footwear collectively reduced the monthly change by 0.34 percentage points.
Rent continued to be the largest contributor to annual inflation, adding 0.55 percentage points to the July rate. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity prices had the most significant negative impact, reducing the annual inflation by 0.68 point. Food and package holidays decreased the rate by 0.26 and 0.06 points respectively.
Strongest annual increases seen in service costs
Prices for restaurants and hotels rose 8.1% compared to July 2025, representing the largest increase among major consumer categories. Transport prices went up 5.5%, and information and communication costs increased by 4.6%. Education expenses rose 4.5%, while insurance and financial services gained 2.9%. Conversely, prices for food and nonalcoholic beverages fell 1.6%, and household furnishings, equipment, and related services declined 1.1%.
Over the past year, services prices grew by 3.8%, whereas goods prices decreased by 0.7%. The primary driver behind the 2.3% core inflation was higher rents. The prices for housing, water, electricity, gas, and other fuels showed no overall annual change. Health-related prices increased 0.7%, and prices for recreation, sport, and culture rose 0.8%.
Harmonised inflation rate in Denmark dips
Denmark’s harmonised consumer price index increased by 1.6% from July 2025, down from 1.8% in June. This index facilitates comparison of inflation across European Union nations. The country’s national CPI accounts for owner-occupied housing via estimated rental values, while the harmonised measure excludes that component. June’s data showed harmonised inflation at 1.0% in Sweden and 1.1% in the Czech Republic.
The net price index increased by 2.6% year over year in July, slightly lower than June’s 2.7%. The harmonised index at fixed tax rates grew by 2.4% from the previous year. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected across around 1,600 shops, firms, and institutions. The agency has scheduled its next consumer price release for Sept. 10.