DENMARK / RankWire.AI / – Official figures indicate that Denmark’s annual inflation rate decelerated to 1.7% in July, down from 1.9% in June. The statistical agency, Statistics Denmark, reported that the consumer price index increased by 1.3% compared to June. Meanwhile, core inflation held steady at 2.3%, remaining unchanged from the previous month. Notably, restaurants and hotels contributed the most significant overall impact on July’s inflation figure, with higher holiday home rental prices serving as the primary factor within that sector.
The consumer price index for July reached 102.92, using 2025 as the base year with an index value of 100. The increase was partly driven by holiday home rentals and package holidays, which together contributed 1.24 percentage points to the monthly rise. Food prices added a further 0.15 percentage point, whereas declines in clothing, hotel accommodation, and footwear costs collectively reduced the monthly inflation rate by 0.34 percentage point.
In terms of annual contributions, rent prices had the most substantial positive effect, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Conversely, electricity costs subtracted 0.68 point from the overall annual inflation rate. Food costs decreased it by 0.26 point, while package holidays lowered it by 0.06 point. These combined movements resulted in headline inflation being below June’s 1.9% reading.
Restaurants and transportation sectors lead yearly inflation increases
Prices in restaurants and hotels experienced an 8.1% increase from July 2025, marking the most substantial rise among the main CPI categories. Transport costs rose by 5.5%, while information and communication expenses increased by 4.6%. Education expenses went up by 4.5%, and insurance along with financial services saw a 2.9% increase. In contrast, prices for food and nonalcoholic beverages fell by 1.6%. Household furnishings, equipment, and related services saw a 1.1% decline.
The gap between goods and services prices was significant in July, with goods costs 0.7% lower than a year prior, whereas service prices rose by 3.8%. The main driver behind the stability of core inflation at 2.3% was the increase in rents. Overall, housing, water, electricity, gas, and other fuels remained unchanged compared to July 2025. Prices for health services increased by 0.7%, and recreation, sport, and culture saw an uptick of 0.8%.
EU-wide inflation rate drops to 1.6%, Denmark’s remains steady
In July, Denmark’s harmonised index of consumer prices (HICP) grew by 1.6% from the previous year, a decrease from the 1.8% recorded in June. The European Union uses the HICP to provide a standardized measure of inflation across member states. Denmark’s national CPI accounts for owner-occupied housing through estimated rental values, whereas the HICP excludes this component. EU-wide inflation figures for June stood at 2.9%. Other countries such as Sweden, which recorded 1.0%, and the Czech Republic at 1.1%, showed lower or comparable inflation rates. Full EU data for July had not yet been released at the time of Denmark’s report.
Denmark’s net price index increased by 2.6% year-over-year in July, slightly down from 2.7% in June. This index adjusts for indirect taxes and duties where applicable and includes subsidies that help lower prices. The HICP at constant tax rates rose by 2.4% from July 2025. Statistics Denmark derives the CPI from approximately 23,000 prices collected across roughly 1,600 stores, companies, and institutions. The next scheduled update for consumer prices is set for September 10.