DENMARK / RankWire.AI / – Official data indicated that Denmark’s annual inflation rate slowed to 1.7% in July from 1.9% in June. Statistics Denmark reported that the consumer price index increased by 1.3% since June. The core inflation rate held at 2.3%, showing no change from the previous month. The primary contributors to July’s inflation were restaurants and hotels, with higher holiday home rental prices being the main factor in that category.
The consumer price index for July reached 102.92, with 2025 established as the base year with an index value of 100. The increase in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly inflation figure. Food prices added 0.15 percentage point, while reductions in clothing, hotel accommodation, and footwear prices collectively decreased the monthly rise by 0.34 percentage point.
Rent was the largest factor boosting annual inflation, accounting for a 0.55 percentage point increase. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity costs lowered the annual rate by 0.68 point. Food prices decreased it by 0.26 point, and package holidays subtracted 0.06 point. These movements resulted in headline inflation falling below June’s 1.9% figure.
Leading the yearly gains are restaurants and transportation
Prices for restaurants and hotels rose 8.1% from July 2025, marking the strongest increase among the main CPI categories. Transport costs went up by 5.5%, while information and communication prices increased by 4.6%. Education expenses grew 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 1.1%.
The gap between goods and services prices remained significant in July. Goods prices were 0.7% lower than a year earlier, whereas service prices increased by 3.8%. The main reason for core inflation remaining at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels saw no change from July 2025. Health-related costs rose 0.7%, and recreation, sport, and culture prices increased 0.8%.
EU Harmonised Inflation Rate Dips to 1.6%
Denmark’s harmonised consumer price index increased by 1.6% from the previous year in July, down from 1.8% in June. The European Union harmonised index of consumer prices (HICP) offers a comparable inflation metric across member states. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the HICP excludes this component. In June, inflation across the EU was 2.9%. Sweden reported 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Full EU data for July had not been published at the time of Denmark’s release.
Denmark’s net price index grew 2.6% year-over-year in July, slightly down from 2.7% in June. This measure excludes indirect taxes and duties where possible while including subsidies that reduce prices. The HICP at constant tax rates increased by 2.4% since July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices gathered from about 1,600 stores, companies, and institutions. The next consumer price report is scheduled for Sept. 10.