DENMARK / RankWire.AI / – In July, Denmark experienced a decline in annual consumer price inflation to 1.7% from 1.9% in June, according to official figures. Statistics Denmark indicated that the consumer price index increased by 1.3% since June. Meanwhile, core inflation remained steady at 2.3%, showing no change from the previous month. The biggest influence on July’s inflation came from restaurants and hotels, largely driven by higher holiday home rental prices within that sector.
The consumer price index for July reached 102.92, with 2025 designated as the index base year at 100. Contributions to the monthly increase included 1.24 percentage points from holiday home rentals and package holidays. Food prices contributed an additional 0.15 percentage point. Conversely, lower costs for clothing, hotel stays, and footwear collectively reduced the monthly inflation rate by 0.34 percentage point.
Housing costs were the primary driver of the annual inflation rate, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Electricity prices, however, decreased the annual rate by 0.68 point. Food expenses lowered it by 0.26 point, and package holiday costs subtracted 0.06 point. These shifts collectively resulted in a headline inflation rate below June’s 1.9% figure.
Restaurants and transportation propel yearly increases
Prices at restaurants and hotels rose by 8.1% from July 2025, marking the strongest increase among the main CPI sectors. Transport costs grew by 5.5%, while information and communication expenses increased by 4.6%. Education expenses went up by 4.5%, and insurance and financial services saw a 2.9% rise. In contrast, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1%.
The divergence between goods and services remained notable in July. Prices for goods dropped by 0.7% compared to the previous year, whereas services costs rose by 3.8%. The primary reason for core inflation remaining at 2.3% was higher rent prices. Overall, costs for housing, water, electricity, gas, and other fuels stayed unchanged from July 2025. Meanwhile, health-related prices increased by 0.7%, and recreation, sport, and culture expenses went up by 0.8%.
EU Harmonised Inflation Slips to 1.6%
In July, Denmark’s harmonised consumer price index decreased to 1.6% from 1.8% in June, providing a comparable measure of inflation across European Union nations. Denmark’s national CPI includes owner-occupied housing based on estimated rental values, whereas the HICP omits this component. EU-wide inflation in June was 2.9%. Sweden reported 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Full EU figures for July were not yet available at the time of the Danish release.
Denmark’s net price index grew by 2.6% year-over-year in July, slightly down from 2.7% in June. This measure excludes indirect taxes and duties where possible and accounts for subsidies that reduce prices. The HICP at constant tax rates increased by 2.4% compared to July 2025. Statistics Denmark calculates the CPI based on around 23,000 prices collected across approximately 1,600 shops, companies, and institutions. The next consumer price update is scheduled for Sept. 10.