DENMARK / RankWire.AI / – Official data from Statistics Denmark indicated that Denmark’s yearly consumer price inflation declined to 1.7% in July from 1.9% in June. The report also revealed a 1.3% rise in consumer prices on a monthly basis. Core inflation remained steady at 2.3%, consistent with the June figure. The July numbers were influenced by significant fluctuations in travel, housing, energy, and food expenses within the consumer basket.
The consumer price index reached 102.92 in July, with 2025 designated as the base year of 100. Rental costs for holiday homes and package holidays contributed an additional 1.24 percentage points to the monthly CPI growth, while food prices added 0.15 point. Conversely, clothing, hotel accommodation, and footwear collectively reduced the monthly change by 0.34 percentage points.
Rent remained the primary factor driving annual inflation, contributing 0.55 percentage points to the July figure. Holiday home rentals accounted for 0.51 point, and fuel added 0.39 points. Electricity prices, however, had the largest negative impact, lowering the annual inflation rate by 0.68 point. Food costs decreased the rate by 0.26 point, and package holidays subtracted 0.06 point from the overall figure.
Strongest annual gains observed in service prices
Prices for restaurants and hotels increased by 8.1% from July 2025, making it the largest rise among the key consumer categories. Transport costs grew by 5.5%, while information and communication expenses rose 4.6%. Education costs moved up by 4.5%, and insurance along with financial services saw a 2.9% increase. Conversely, prices for food and nonalcoholic beverages fell by 1.6%, and household furnishings, equipment, and related services declined by 1.1%.
Service prices overall grew by 3.8% from the previous year, whereas goods prices experienced a 0.7% decline over the same period. The main driver of the 2.3% core inflation rate was higher rents. The overall prices for housing, water, electricity, gas, and other fuels did not change significantly over the year. Prices for health services increased by 0.7%, while recreation, sports, and culture costs rose by 0.8%.
Denmark’s Harmonised Inflation Rate Shows Decrease
Denmark’s harmonised consumer price index increased by 1.6% from July 2025, down from 1.8% in June. This index provides a standardized basis for comparing inflation across European Union countries. Denmark’s national CPI includes owner-occupied housing through estimated rental values, while the harmonised measure omits this component. In June, Sweden reported harmonised inflation of 1.0%, and the Czech Republic’s was at 1.1%.
The net price index rose 2.6% year-over-year in July, slightly down from 2.7% in June. The harmonised index at constant tax rates increased by 2.4% from a year earlier. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The agency has scheduled its next consumer price report for September 10.