DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s yearly inflation rate for consumers dropped to 1.7% in July from 1.9% the previous month. The increase in consumer prices from June was 1.3%, driven largely by notable seasonal surges in multiple travel-related sectors. The core inflation rate remained constant at 2.3%, showing no change from the month prior. The services sector continued to outpace goods in price increases, with categories such as restaurants, hotels, holiday home rentals, and transportation playing significant roles in shaping the July data.
The consumer price index in July hit 102.92, with 2025 designated as the base year of 100. The rise was bolstered by a combined 1.24 percentage points from holiday home rentals and package holidays. An additional 0.15 percentage point came from food prices. Conversely, clothing, hotel accommodation, and footwear partly offset these gains, reducing the monthly change by a total of 0.34 percentage point. Consequently, monthly inflation remained well above the annual rate.
Rent was the largest contributor to Denmark’s annual inflation, adding 0.55 percentage points. Contributions from holiday home rentals and fuel were 0.51 and 0.39 points respectively. Conversely, electricity prices caused a reduction of 0.68 point in the annual rate, while food prices lowered it by 0.26 point. Package holidays decreased the rate by 0.06 point. These movements collectively helped bring the headline inflation rate down from the 1.9% level observed in June.
Service costs continue to outpace goods
Prices for restaurants and hotels increased by 8.1% compared to July 2025, making it the fastest-growing category among major consumer sectors. Transport prices rose by 5.5%, while costs for information and communication increased by 4.6%. Education expenses gained 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%. Household furnishings, equipment, and related services fell by 1.1% year-over-year.
The disparity between goods and services was particularly evident in July. Services prices grew by 3.8% compared to the previous year, whereas prices for goods decreased by 0.7%. The persistent rise in rents remained a primary driver supporting the 2.3% core inflation figure. Prices for housing, water, electricity, gas, and other fuels showed no significant annual change. Meanwhile, health-related costs increased by 0.7%, and recreation, sport, and culture expenditures went up by 0.8%. These figures highlight that service costs continue to advance more rapidly than those for tangible goods.
Lower readings in harmonised inflation
Denmark’s harmonised index of consumer prices experienced a 1.6% rise from July 2025, down from 1.8% in June. This index facilitates inflation comparisons across European Union nations. The country’s national consumer price index includes owner-occupied housing costs calculated through estimated rental values, whereas the harmonised measure excludes this component. In June, Sweden reported harmonised inflation of 1.0%, with the Czech Republic at 1.1%. Complete comparable data for July had not been released at the time of Denmark’s report.
The net price index, which adjusts for indirect taxes and duties, increased by 2.6% year-over-year in July, slightly less than the 2.7% recorded in June. This index accounts for subsidies that lower consumer prices and excludes certain indirect costs. At constant tax rates, the harmonised index rose by 2.4% compared to July 2025. Statistics Denmark compiles the consumer price index based on roughly 23,000 prices gathered from approximately 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.