DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual inflation rate declined to 1.7% in July from 1.9% in June. The consumer price index increased by 1.3% from June, according to Statistics Denmark. Meanwhile, the core inflation rate remained steady at 2.3% compared to the previous month. The most significant contribution to July’s inflation came from the restaurant and hotel sector, primarily driven by rising holiday home rental costs within that category.
The consumer price index for July hit 102.92, with 2025 designated as the base year with an index value of 100. The monthly increase was partly attributable to holiday home rentals and package holidays, which accounted for 1.24 percentage points. Food prices contributed an additional 0.15 percentage point. Conversely, decreases in clothing, hotel accommodation, and footwear prices collectively reduced the monthly inflation rate by 0.34 percentage point.
Rent payments had the largest positive impact on the annual inflation rate, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel costs added 0.39 point. Electricity prices, on the other hand, reduced the annual rate by 0.68 point. Food costs lowered it by 0.26 point, and package holidays subtracted 0.06 point. These combined movements resulted in the headline inflation rate falling below June’s 1.9% figure.
Price increases in restaurants and transport drive yearly inflation
Prices for restaurants and hotels saw an 8.1% increase from July 2025, marking the strongest growth among the main CPI categories. Transport prices rose by 5.5%, while information and communication costs grew by 4.6%. Education expenses increased by 4.5%, and insurance and financial services saw a 2.9% rise. In contrast, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services decreased by 1.1%.
The gap between goods and services prices remained prominent in July. Goods prices were 0.7% lower than the previous year, whereas service prices increased by 3.8%. The main factor keeping core inflation at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels remained stable compared to July 2025. Prices for health services rose by 0.7%, and recreation, sport, and culture costs increased by 0.8%.
EU Harmonised inflation drops to 1.6%
In July, Denmark’s harmonised consumer price index increased by 1.6% year-over-year, a decline from June’s 1.8%. The European Union harmonised index of consumer prices (HICP) offers a comparable inflation measurement across member states. Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, whereas the HICP excludes this element. EU-wide inflation was 2.9% in June. Sweden recorded 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Full EU figures for July were not yet released at the time of the Danish data announcement.
In July, Denmark’s net price index increased by 2.6% compared to the previous year, a slight slowdown from June’s 2.7%. This index excludes indirect taxes and duties where applicable and accounts for subsidies that reduce prices. The HICP at constant tax rates rose by 2.4% since July 2025. Statistics Denmark calculates the CPI based on roughly 23,000 prices collected across approximately 1,600 shops, companies, and institutions. The next consumer price report is scheduled for September 10.