DENMARK / RankWire.AI / – Official data revealed that Denmark’s yearly inflation rate declined to 1.7% in July from 1.9% in June. The Statistics Denmark report also indicated a 1.3% month-on-month rise in consumer prices. Core inflation remained steady at 2.3%, consistent with the June figure. The July data reflected notable shifts in costs related to travel, housing, energy, and food across the consumer basket.
The consumer price index reached 102.92 in July, with 2025 designated as the base year of 100. Holiday home rentals and package holidays contributed an additional 1.24 percentage points to the monthly CPI increase. Food prices added another 0.15 point. Conversely, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 percentage points.
Rent remained the largest contributor to the annual inflation rate, adding 0.55 percentage points in July. Holiday home rentals contributed 0.51 point, while fuel costs added 0.39 point. Electricity prices exerted the largest negative influence, decreasing annual inflation by 0.68 point among the listed components. Food costs lowered the rate by 0.26 point, and package holidays subtracted 0.06 point from the overall figure.
Service sector experiences strongest yearly growth
Prices in restaurants and hotels increased by 8.1% compared to July 2025, representing the highest rise among primary consumer sectors. Transport costs went up by 5.5%, while information and communication expenses rose 4.6%. Education expenses increased 4.5%, and insurance along with financial services grew by 2.9%. Prices for food and nonalcoholic beverages declined by 1.6%, whereas household furnishings, equipment, and related services fell by 1.1%.
Compared to the previous year, service prices rose by 3.8%, while the prices of goods decreased by 0.7%. The primary driver of the 2.3% core inflation was higher rents. Overall, housing, water, electricity, gas, and other fuels showed no significant annual price change. Prices for health increased by 0.7%, and recreation, sport, and culture saw a rise of 0.8%.
Denmark’s harmonised inflation rate shows signs of easing
The harmonised index of consumer prices in Denmark increased by 1.6% from July 2025, down from 1.8% in June. This index offers a standardized measure for comparing inflation levels across European Union member states. While Denmark’s national CPI incorporates owner-occupied housing through estimated rental values, the harmonised version excludes this element. In June, Sweden reported a harmonised inflation rate of 1.0%, with the Czech Republic at 1.1%.
The net price index grew by 2.6% year-over-year in July, slightly below June’s 2.7%. The harmonised index at constant tax rates increased by 2.4% compared to the previous year. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected across around 1,600 stores, companies, and institutions. The agency has scheduled its next consumer price release for Sept. 10.