DENMARK / RankWire.AI / – Official data from Statistics Denmark indicate that the annual rate of consumer price inflation in Denmark eased to 1.7% in July from 1.9% in June. Consumer prices saw a monthly increase of 1.3%. The core inflation rate remained steady at 2.3%, matching the June figure. These July numbers highlight significant fluctuations in costs related to travel, housing, energy, and food within the consumer basket.
The consumer price index stood at 102.92 in July, with 2025 designated as the base year with a value of 100. The rise in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly CPI growth. Food costs added another 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear collectively decreased the monthly change by 0.34 percentage point.
Rent continued to be the most significant factor driving annual inflation, accounting for a 0.55 percentage point increase in the July rate. Holiday home rentals contributed 0.51 point, while fuel prices added 0.39 point. Electricity prices had the largest negative impact, reducing the annual inflation rate by 0.68 point. Food prices decreased the rate by 0.26 point, and package holidays subtracted 0.06 point from the annual measure.
Strongest annual rises seen in service sector costs
Prices for restaurants and hotels rose by 8.1% compared to July 2025, marking the highest increase among the main consumer categories. Transport prices increased by 5.5%, while information and communication costs went up by 4.6%. Education expenses rose by 4.5%, and insurance as well as financial services increased by 2.9%. Meanwhile, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
Over the past year, service prices grew by 3.8%, whereas goods prices declined by 0.7%. The main driver of the 2.3% core inflation figure was higher rents. The overall prices of housing, water, electricity, gas, and other fuels showed no significant change on an annual basis. Prices for health services rose by 0.7%, and those for recreation, sport, and culture increased by 0.8%.
Denmark’s harmonised inflation rate shows signs of slowing
The harmonised index of consumer prices in Denmark increased by 1.6% from July 2025, down from 1.8% in June. This index facilitates cross-country comparison of inflation within the European Union. Denmark’s national CPI incorporates owner-occupied housing costs based on estimated rental values, while the harmonised measure omits this component. Data from June revealed harmonised inflation rates of 1.0% in Sweden and 1.1% in the Czech Republic.
In July, the net price index grew by 2.6% year over year, slightly below June’s 2.7%. The harmonised index at constant tax rates increased by 2.4% compared to the previous year. Statistics Denmark calculates the CPI using approximately 23,000 prices collected across roughly 1,600 shops, companies, and institutions. The next consumer price report is scheduled for release on Sept. 10.