DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate for consumers slowed to 1.7% in July from 1.9% in June. The month saw consumer prices increase by 1.3% compared to June, driven mainly by notable seasonal rises in various travel-related sectors. Meanwhile, the core inflation rate remained steady at 2.3%, identical to the previous month. Price growth for services continued to outpace that of goods, with restaurants, hotels, holiday home rentals, and transportation services being among the primary contributors to July’s figures.
The consumer price index hit 102.92 in July, with 2025 designated as the base year of 100. The rise in prices was significantly influenced by holiday home rentals and package holidays, which together accounted for a 1.24 percentage point increase. Additionally, food contributed 0.15 percentage points. Conversely, categories like clothing, hotel accommodations, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage points. As a result, monthly inflation remained notably higher than the annual rate.
Rent was the most substantial factor boosting Denmark’s yearly inflation rate, contributing 0.55 percentage points. Holiday home rentals added 0.51 point, and fuel contributed 0.39 point. On the other hand, electricity prices decreased the annual rate by 0.68 point, and food prices lowered it by 0.26 point. Package holidays deducted 0.06 point from the overall rate. These shifts collectively helped bring the headline inflation figure down from the 1.9% level observed in June.
Services Costs Persistently Outpacing Goods
In July 2025, restaurant and hotel prices increased by 8.1%, marking the highest growth among main consumer groups. Transport costs advanced 5.5%, while expenses for information and communication rose 4.6%. Education costs grew by 4.5%, and insurance along with financial services increased by 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services fell 1.1% compared to the previous year.
Throughout July, the divergence between goods and services prices remained prominent. Service expenses surged 3.8% year-over-year, whereas the cost of goods declined by 0.7%. Elevated rent prices remained a key driver supporting the 2.3% core inflation rate. While housing, water, electricity, gas, and other fuels showed no significant annual change, health-related prices increased by 0.7%, and recreation, sport, and culture costs rose by 0.8%. These figures demonstrate that service-related expenses continue to grow faster than those for tangible goods.
Harmonised Inflation Shows a Slight Downward Trend
Denmark’s harmonised index of consumer prices increased by 1.6% from July 2025, a decrease from 1.8% recorded in June. This metric facilitates cross-country inflation comparisons within the European Union. The national consumer price index in Denmark incorporates owner-occupied housing via estimated rental values, whereas the harmonised index excludes this component. In June, Sweden’s harmonised inflation was 1.0%, and the Czech Republic’s stood at 1.1%. However, complete comparative data for July was not yet available at the time of the Danish report.
In July, the net price index rose by 2.6% compared to the same month in 2025, a slight decrease from 2.7% in June. This measure accounts for indirect taxes and duties where applicable and incorporates subsidies that help lower consumer prices. The harmonised index at constant tax rates grew by 2.4% year-over-year. Statistics Denmark calculates the consumer price index based on approximately 23,000 prices gathered from around 1,600 stores, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.
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