DENMARK / RankWire.AI / – Amid ongoing economic fluctuations, Denmark’s annual inflation rate slowed to 1.7% in July, down from 1.9% in June, according to official figures. Statistics Denmark reported that the consumer price index increased by 1.3% from June. Meanwhile, the core inflation rate remained steady at 2.3%, showing no change from the previous month. The largest contributor to July’s inflation was the hospitality sector, specifically restaurants and hotels, with higher holiday home rental costs being the primary factor within that category.
The consumer price index for July reached 102.92, with 2025 serving as the base year with an index of 100. Contributions to the monthly inflation included holiday home rentals and package holidays, which together accounted for 1.24 percentage points. Food prices contributed an additional 0.15 percentage point, whereas decreases in clothing, hotel accommodation, and footwear prices collectively reduced the monthly rise by 0.34 percentage point.
Looking at annual contributions, rent was the most significant factor, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Conversely, electricity prices reduced the annual inflation rate by 0.68 point. Food prices decreased it by 0.26 point, and package holidays subtracted 0.06 point. These shifts resulted in headline inflation falling below June’s 1.9% figure.
Transport and restaurant sectors drive yearly increases
Prices in restaurants and hotels surged by 8.1% from July 2025, marking the strongest increase among the primary CPI categories. Transport costs rose by 5.5%, while information and communication prices gained 4.6%. Education expenses went up by 4.5%, and insurance and financial services increased by 2.9%. In contrast, prices for food and nonalcoholic beverages declined by 1.6%. Additionally, household furnishings, equipment, and related services fell by 1.1%.
The gap between goods and services remained significant in July. Goods prices were 0.7% lower than a year earlier, whereas service prices increased by 3.8%. The primary driver behind core inflation remaining at 2.3% was rising rents. Overall, housing, water, electricity, gas, and other fuels showed no change from July 2025. Prices for health care increased by 0.7%, and recreation, sport, and culture prices went up by 0.8%.
European Union inflation measure drops to 1.6%
Denmark’s harmonised index of consumer prices (HICP) grew by 1.6% from a year earlier in July, a decline from 1.8% in June. The European Union HICP offers a comparable inflation metric across member countries. Denmark’s national CPI incorporates owner-occupied housing costs based on estimated rental values, whereas the HICP omits this component. In June, inflation across the EU was 2.9%. Sweden registered 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Complete EU data for July was not yet available at the time of this release.
The net price index in Denmark increased by 2.6% year-over-year in July, easing from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable and adds subsidies that lower prices. The HICP at constant tax rates rose by 2.4% from July 2025. Statistics Denmark calculates the CPI based on approximately 23,000 prices collected from around 1,600 retail outlets, businesses, and institutions. The next update on consumer prices is scheduled for September 10.