DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s annual inflation rate decreased to 1.7% in July from 1.9% in June. Consumer prices saw a 1.3% increase compared to June, driven by notable seasonal rises in various travel-related sectors. Despite these changes, core inflation remained steady at 2.3%, the same as the previous month. Price growth for services continued to surpass that of goods, with categories such as restaurants, hotels, holiday home rentals, and transportation playing key roles in shaping July’s figures.
The consumer price index reached 102.92 in July, with 2025 set as the base year of 100. The rise in holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly increase. Food prices added an additional 0.15 percentage point. Conversely, clothing, hotel accommodations, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. This dynamic resulted in monthly inflation significantly exceeding the annual rate.
Rent was the primary factor driving Denmark’s yearly inflation, adding 0.55 percentage points. Holiday home rentals contributed 0.51 points, while fuel prices contributed 0.39 points. Electricity prices, on the other hand, decreased the annual rate by 0.68 point. Food prices reduced it by 0.26 point, and package holidays subtracted 0.06 point. These movements collectively helped lower the headline inflation rate from the 1.9% recorded in June.
Service prices continue to outpace goods
In July 2025, restaurant and hotel prices increased by 8.1%, marking the most significant rise among major consumer categories. Transport costs grew by 5.5%, while information and communication expenses rose 4.6%. Education costs saw a 4.5% increase. Insurance and financial services went up by 2.9%. Meanwhile, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services experienced a 1.1% decrease from the previous year.
Throughout July, the divergence between goods and services remained evident. Service prices increased by 3.8% compared to the previous year, whereas goods prices fell by 0.7%. The continued rise in rents was the main factor maintaining the 2.3% core inflation rate. While housing, water, electricity, gas, and other fuels showed no significant annual change, health prices rose by 0.7%, and recreation, sport, and culture costs increased by 0.8%. These figures highlight the persistent trend of services prices outpacing those of tangible goods.
Lower figures also seen in harmonised inflation measures
Denmark’s harmonised consumer price index grew by 1.6% from July 2025, a decline from 1.8% in June. This measure facilitates cross-country inflation comparisons within the European Union. Denmark’s national consumer price index considers owner-occupied housing through estimated rental values, a component excluded from the harmonised index. In June, Sweden’s harmonised inflation was 1.0%, and the Czech Republic’s stood at 1.1%. However, full figures for July were not yet available at the time of Denmark’s release.
The net price index rose 2.6% year-over-year in July, slightly below the 2.7% increase seen in June. This measure accounts for indirect taxes and duties where applicable and includes subsidies that lower consumer prices. The harmonised index at constant tax rates increased by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 prices collected across about 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.