DENMARK / RankWire.AI / – According to Statistics Denmark, the country’s annual inflation rate dropped to 1.7% in July from 1.9% in June. Consumer prices increased by 1.3% compared to June, driven largely by sharp seasonal rises in various travel-related sectors. Meanwhile, core inflation stayed steady at 2.3%, the same as the previous month. The service sector continued to experience more significant price hikes than goods. Notable categories influencing the July figures included restaurants, hotels, holiday home rentals, and transportation.
The consumer price index reached 102.92 in July, using 2025 as the base year of 100. Rental costs for holiday homes and package holidays together contributed 1.24 percentage points to the monthly increase. Food prices added an additional 0.15 percentage point. Conversely, clothing, hotel stays, and footwear partially offset those gains. These three categories collectively reduced the monthly change by 0.34 percentage points. The outcome was a monthly inflation rate significantly higher than the annual figure.
Rent was the biggest factor boosting Denmark’s yearly inflation, accounting for a 0.55 percentage point increase. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity prices, on the other hand, lowered the annual rate by 0.68 point. Food costs reduced it by 0.26 point, while package holidays subtracted another 0.06 point. These movements collectively helped decrease the headline inflation from the 1.9% level recorded in June.
Service sector prices continue to outpace goods
In July 2025, prices for restaurants and hotels rose by 8.1%, the highest among major consumer groups. Transport costs increased by 5.5%, while expenses for information and communication grew by 4.6%. Education prices went up by 4.5%, and insurance and financial services increased by 2.9%. In contrast, food and nonalcoholic beverage prices declined by 1.6%. Household furnishings, equipment, and related services fell by 1.1% compared to the previous year.
The gap between goods and services prices remained notable in July. Service costs grew by 3.8% year-over-year, whereas prices for goods decreased by 0.7%. The primary driver of the 2.3% core inflation rate was higher rents. The prices of housing, water, electricity, gas, and other fuels showed no significant annual change. Prices for health increased by 0.7%, and recreation, sport, and culture rose by 0.8%. Overall, these figures demonstrate that service prices continue to increase more rapidly than those for tangible goods.
Lower inflation seen in Denmark’s harmonised index of consumer prices
Denmark’s harmonised consumer price index rose 1.6% from July 2025, down from 1.8% in June. This metric facilitates inflation comparisons across European Union nations. The Danish national consumer price index includes owner-occupied housing costs based on estimated rental values. The harmonised index, however, excludes this component. In June, Sweden recorded harmonised inflation of 1.0%, while the Czech Republic reported 1.1%. Complete comparable figures for July had not yet been released alongside Denmark’s data.
In July, the net price index increased by 2.6% year-over-year, easing from 2.7% in June. This index excludes indirect taxes and duties where possible, while incorporating subsidies that reduce consumer costs. When calculated at constant tax rates, the harmonised index increased by 2.4% from July 2025. Statistics Denmark gathers the consumer price data from approximately 23,000 prices across around 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.