DENMARK / RankWire.AI / – Official data revealed that Denmark’s annual inflation rate for consumer prices decreased to 1.7% in July from 1.9% in June. Statistics Denmark reported a 1.3% rise in consumer prices on a monthly basis. The core inflation rate remained steady at 2.3%, the same as in June. These July figures largely reflect significant shifts in costs related to travel, housing, energy, and food within the consumer basket.
In July, the consumer price index reached 102.92, with 2025 serving as the base year at 100. Expenses from holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase in the CPI. Food prices added another 0.15 percentage point. Conversely, the overall monthly change was reduced by a combined 0.34 percentage point due to clothing, hotel accommodation, and footwear.
The largest factor driving annual inflation was rent, which contributed 0.55 percentage point to the July figure. Holiday home rentals added 0.51 point, and fuel prices contributed 0.39 point. Electricity costs led to the biggest negative impact among components, reducing annual inflation by 0.68 point. Food prices lowered the rate by 0.26 point, while package holiday costs decreased it by 0.06 point.
Strongest annual increases seen in service prices
Prices for restaurants and hotels increased by 8.1% compared to July 2025, marking the highest growth among main consumer sectors. Transport costs rose 5.5%, while prices for information and communication grew by 4.6%. Education expenses went up by 4.5%, and insurance along with financial services increased by 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
Overall, service prices advanced by 3.8% over the past year, whereas prices for goods declined by 0.7%. The main driver behind the 2.3% core inflation figure remained higher rents. The overall prices for housing, water, electricity, gas, and other fuels showed no significant change over the year. Prices for health services increased by 0.7%, and those for recreation, sport, and culture rose by 0.8%.
Denmark’s harmonised inflation rate shows a decline
The harmonised index of consumer prices in Denmark grew by 1.6% from July 2025, slowing down from 1.8% in June. This index provides a standardized measure for comparing inflation across European Union nations. Denmark’s national CPI accounts for owner-occupied housing based on estimated rental values, whereas the harmonised index excludes this component. June figures indicated harmonised inflation rates of 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 down from 2.7% in June. Meanwhile, the harmonised index at constant tax rates rose by 2.4% compared to the previous year. Statistics Denmark gathers the CPI from roughly 23,000 prices collected across approximately 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price update for September 10.