DENMARK / RankWire.AI / – According to official statistics, Denmark experienced a slowdown in its annual consumer price inflation rate, which decreased to 1.7% in July from 1.9% in June. The data from Statistics Denmark also indicated a 1.3% monthly rise in consumer prices. Meanwhile, core inflation remained steady at 2.3%, consistent with the June figure. The July numbers were influenced by significant fluctuations in travel, housing, energy, and food expenses within the consumer basket.
In July, the consumer price index reached 102.92, with 2025 designated as the base year of 100. The increase was partly driven by a 1.24 percentage point contribution from holiday home rentals and package holidays. Food prices contributed an additional 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 percentage point.
The most substantial positive influence on annual inflation was from rent, which added 0.55 percentage point to the July figure. Holiday home rentals contributed 0.51 point, and fuel costs added 0.39 point. Electricity prices, on the other hand, had the largest negative impact, lowering annual inflation by 0.68 point. Food costs decreased the rate by 0.26 point, while package holidays subtracted 0.06 point from the overall annual change.
Service sector sees the strongest yearly gains
Prices in restaurants and hotels increased by 8.1% compared to July 2025, representing the highest rise among key consumer categories. Transport expenses climbed 5.5%, while information and communication costs rose 4.6%. Education costs moved up 4.5%, and insurance along with financial services saw a 2.9% increase. Conversely, prices for food and nonalcoholic beverages fell by 1.6%, and household furnishings, equipment, and related services declined by 1.1%.
Overall, services prices increased by 3.8% from the previous year, whereas goods prices experienced a 0.7% decrease in the same period. The primary driver behind the 2.3% core inflation rate was higher rents. Prices for housing, water, electricity, gas, and other fuels showed no overall change over the year. Health-related expenses rose by 0.7%, with recreation, sport, and culture prices increasing by 0.8%.
Harmonised inflation rate in Denmark shows signs of easing
The harmonised index of consumer prices in Denmark increased by 1.6% from July 2025, down from 1.8% in June. This index offers a standardized method for comparing inflation across European Union nations. Denmark’s national CPI includes owner-occupied housing based on estimated rental values, whereas the harmonised version excludes this component. June’s data revealed harmonised inflation rates of 1.0% in Sweden and 1.1% in the Czech Republic.
The net price index increased 2.6% year-over-year in July, compared to 2.7% in June. When adjusting for tax rates, the harmonised index rose 2.4% from the previous year. Statistics Denmark compiles the CPI using approximately 23,000 prices collected across around 1,600 shops, companies, and institutions. The agency plans to release its next consumer price report on Sept. 10.