DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual consumer price inflation slowed to 1.7% in July, down from 1.9% in June. The data from Statistics Denmark indicated a 1.3% rise in consumer prices on a monthly basis. Core inflation remained steady at 2.3%, matching the rate observed in June. The July data was influenced by notable shifts in travel, housing, energy, and food expenses within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 set as the base year at 100. The increase was partly driven by holiday home rentals and package holidays, which contributed 1.24 percentage points to the monthly CPI rise. Food prices added a further 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 percentage point.
Rent emerged as the largest factor pushing annual inflation higher, accounting for 0.55 percentage point of the July figure. Holiday home rentals contributed 0.51 points, and fuel added 0.39 points. Electricity prices had a significant downward impact, reducing annual inflation by 0.68 point, the most substantial negative contribution among the components listed. Food prices decreased by 0.26 point, while package holidays detracted 0.06 point from the overall rate.
Strongest annual growth seen in service costs
Prices at restaurants and hotels increased 8.1% from July 2025, representing the largest rise among major consumer categories. Transport costs climbed 5.5%, while information and communication expenses rose 4.6%. Education costs went up by 4.5%, and insurance along with financial services increased by 2.9%. Food and nonalcoholic beverage prices fell by 1.6%, and household furnishings, equipment, and related services saw a 1.1% decline.
Overall, service prices experienced a 3.8% increase year-over-year, whereas goods prices decreased by 0.7%. The main driver of the 2.3% core inflation rate was higher rent costs. Prices for housing, water, electricity, gas, and other fuels remained unchanged on an annual basis. Health sector prices rose by 0.7%, and costs related to recreation, sport, and culture increased by 0.8%.
Denmark’s harmonised inflation rate shows signs of easing
The harmonised index of consumer prices in Denmark increased by 1.6% from July 2025, slowing down from 1.8% in June. This index offers a standardized comparison of inflation across European Union nations. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the harmonised version excludes this component. June figures indicated harmonised inflation of 1.0% in Sweden and 1.1% in the Czech Republic.
In July, the net price index rose by 2.6% year-over-year, slightly below June’s 2.7%. The harmonised index at constant tax rates increased 2.4% compared to the previous year. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price report for September 10.