DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual consumer price inflation decreased to 1.7% in July from 1.9% in June. According to Statistics Denmark, the consumer price index increased by 1.3% compared to June. The core inflation rate remained steady at 2.3%, showing no change from the previous month. The most significant overall contribution to July’s inflation came from restaurants and hotels, primarily driven by rising holiday home rental prices within that sector.
In July, the consumer price index reached 102.92, with 2025 serving as the base year with an index value of 100. The increase was partly fueled by holiday home rentals and package holidays, accounting for 1.24 percentage points of the monthly rise. Food prices contributed an additional 0.15 percentage point, while decreased costs for clothing, hotel accommodation, and footwear collectively lowered the monthly inflation by 0.34 percentage point.
Rent emerged as the largest positive factor influencing the annual inflation rate, adding 0.55 percentage points. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Electricity prices, on the other hand, reduced the annual rate by 0.68 point. Food costs diminished it by 0.26 point, and package holidays subtracted 0.06 point. These combined movements kept the headline inflation below June’s 1.9% figure.
Leading contributions to annual inflation come from restaurants and transport
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the strongest growth among the main CPI categories. Transport prices went up by 5.5%, and information and communication costs rose by 4.6%. Education expenses increased by 4.5%, with insurance and financial services climbing 2.9%. In contrast, prices for food and nonalcoholic beverages decreased by 1.6%, and household furnishings, equipment, and related services declined by 1.1%.
The gap between goods and services prices remained wide in July. Goods prices were 0.7% lower than in the same month last year, whereas services 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 prices stayed stable compared to July 2025. Prices for health increased by 0.7%, while recreation, sport, and culture costs rose by 0.8%.
EU harmonised inflation declines to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% from the previous year, down from 1.8% in June. The HICP offers a comparable inflation measurement across European Union member states. Denmark’s national CPI incorporates owner-occupied housing costs through estimated rental values, whereas the HICP excludes this component. In June, EU-wide inflation stood at 2.9%. Sweden registered 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. The full EU figures for July were not yet available at the time of Denmark’s release.
Denmark’s net price index rose by 2.6% year-over-year in July, slightly down from 2.7% in June. This measure accounts for indirect taxes and duties where possible and includes subsidies that reduce prices. The HICP at constant tax rates increased by 2.4% from July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected across roughly 1,600 stores, companies, and institutions. The next consumer price update is scheduled for Sept. 10.