DENMARK / RankWire.AI / – In July, Denmark experienced a decline in its annual consumer price inflation, decreasing to 1.7% from 1.9% in June, according to official data. Statistics Denmark reported that the consumer price index increased by 1.3% compared to June. Meanwhile, core inflation remained steady at 2.3%, showing no change from the previous month. The primary contributors to July’s inflation were restaurants and hotels, with increased holiday home rental costs being the main factor within that sector.
During July, the consumer price index reached 102.92, with 2025 designated as the base year at an index of 100. Holiday home rentals and package holidays accounted for 1.24 percentage points of the monthly rise. Food prices contributed an additional 0.15 percentage point. Conversely, reductions in clothing, hotel accommodations, and footwear prices collectively decreased the monthly increase by 0.34 percentage point.
Rent was the largest positive contributor to the annual inflation rate, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, with fuel adding 0.39 point. Electricity costs decreased the annual rate by 0.68 point. Food prices lowered it by 0.26 point, and package holidays reduced the rate by 0.06 point. These combined fluctuations resulted in headline inflation dropping below June’s 1.9% figure.
Leading the annual increase are restaurants and transportation costs
Prices at restaurants and hotels rose 8.1% from July 2025, representing the most significant increase among the main CPI categories. Transport costs grew by 5.5%, while information and communication expenses increased by 4.6%. Education expenses went up by 4.5%, and insurance along with financial services saw a 2.9% rise. In contrast, prices for food and nonalcoholic beverages declined by 1.6%. Additionally, household furnishings, equipment, and related services decreased by 1.1%.
In July, the gap between goods and services inflation remained substantial. Prices for goods fell 0.7% compared to the previous year, whereas service prices increased by 3.8%. The key driver behind core inflation remaining at 2.3% was higher rent costs. Overall, housing, water, electricity, gas, and other fuels stayed unchanged from July 2025. Prices for health services rose by 0.7%, while recreation, sport, and culture expenses increased by 0.8%.
EU harmonised inflation rate declines to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% compared to a year earlier, down from 1.8% in June. The European Union uses the HICP to provide a comparable measure of inflation across member countries. Denmark’s national CPI incorporates owner-occupied housing costs through estimated rental values, whereas the HICP excludes this component. In June, the EU’s inflation rate was 2.9%. Sweden recorded 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Complete EU figures for July were not yet available at the time of Denmark’s release.
In July, Denmark’s net price index increased 2.6% year-over-year, slightly down from 2.7% in June. This index excludes indirect taxes and duties where possible and accounts for subsidies that lower prices. The HICP at constant tax rates saw a 2.4% rise from July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices gathered from about 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for Sept. 10.