DENMARK / RankWire.AI / – In Denmark, official figures released in July indicate that the annual inflation rate slowed slightly to 1.7% from June’s 1.9%. The data also showed a monthly rise of 1.3% in consumer prices. Core inflation remained steady at 2.3%, consistent with the June figure. These July numbers were influenced by notable shifts in costs related to travel, housing, energy, and food within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 set as the base year (indexed at 100). The increase in the monthly CPI was partly driven by holiday home rentals and package holidays, which contributed 1.24 percentage points. Food prices added another 0.15 percentage point. Conversely, clothing, hotel stays, and footwear collectively reduced the monthly change by 0.34 percentage point.
In July, rent remained the dominant contributor to annual inflation, accounting for 0.55 percentage point of the overall rate. Holiday home rentals contributed 0.51 point, and fuel costs added 0.39 point. Electricity prices, however, had the largest negative impact, decreasing the annual inflation rate by 0.68 point. Food costs also pulled the rate down by 0.26 point, while package holidays lowered it by 0.06 point.
Service sectors see strongest yearly increases
Among the main consumer categories, restaurant and hotel prices saw an 8.1% increase from July 2025, representing the most significant rise. Transport costs grew by 5.5%, while prices for information and communication services climbed 4.6%. Education expenses increased by 4.5%, and insurance and financial services experienced a 2.9% rise. In contrast, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell 1.1%.
Overall, service prices in Denmark went up by 3.8% on an annual basis, whereas goods prices decreased by 0.7% over the same period. The primary driver for the 2.3% core inflation rate was rising rents. Prices for housing, water, electricity, gas, and other fuels showed no significant overall change over the year. Meanwhile, health-related costs increased by 0.7%, and recreation, sport, and culture prices rose 0.8%.
Denmark’s harmonised inflation rate shows a slowdown
In July, Denmark’s harmonised index of consumer prices grew by 1.6% from July 2025, down from 1.8% in June. This index is used to compare inflation levels across European Union member states. The country’s national CPI incorporates owner-occupied housing via estimated rental values, while the harmonised measure excludes this component. Data for June indicated harmonised inflation rates of 1.0% in Sweden and 1.1% in the Czech Republic.
In July, the net price index increased by 2.6% year over year, slightly down from June’s 2.7%. The harmonised index at constant tax rates recorded a 2.4% rise from the previous year. Statistics Denmark gathers its CPI data from roughly 23,000 prices collected across around 1,600 shops, companies, and institutions. The agency’s next consumer price report is scheduled for September 10.