DENMARK / RankWire.AI / – Official figures reveal that Denmark’s yearly inflation rate 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. Meanwhile, core inflation stayed steady at 2.3%, the same as the previous month. The biggest contributor to July’s inflation was the rise in prices at restaurants and hotels, primarily driven by higher holiday home rental costs within that category.
The consumer price index for July reached 102.92, with 2025 serving as the base year where the index is set at 100. The increase in holiday home rentals and package holidays accounted for 1.24 percentage points of the monthly change. Food contributed an additional 0.15 percentage point, while declines in clothing, hotel accommodation, and footwear prices collectively lowered the rate by 0.34 percentage point.
Rent emerged as the primary factor behind the annual inflation rate, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, and fuel added 0.39 point. Conversely, electricity prices reduced the rate by 0.68 point. Food costs lowered the inflation rate by 0.26 point, and package holidays subtracted 0.06 point, leaving the headline inflation below June’s 1.9% figure.
Restaurants and Transportation Drive Yearly Increases
Prices in restaurants and hotels rose by 8.1% from July 2025, marking the strongest increase among the main CPI categories. Transport costs grew by 5.5%, while information and communication prices increased by 4.6%. Education expenses went up by 4.5%, and insurance along with financial services saw a 2.9% rise. In contrast, prices for food and nonalcoholic beverages decreased by 1.6%, and household furnishings, equipment, and related services declined by 1.1%.
The divergence between goods and services remained significant in July. Goods prices were 0.7% lower than the previous year, whereas service prices increased by 3.8%. The main reason core inflation stayed at 2.3% was the rise in rents. Overall, housing, water, electricity, gas, and other fuels remained unchanged from July 2025. Prices for health increased by 0.7%, while recreation, sport, and culture costs saw a 0.8% rise.
EU Harmonised Inflation Declines to 1.6%
The harmonised index of consumer prices in Denmark increased by 1.6% year-over-year in July, down from 1.8% in June. The European Union uses the HICP to provide a standardized inflation metric across member countries. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the HICP excludes this component. In June, EU inflation stood at 2.9%. Sweden reported 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Complete EU figures for July had not been released at the time of Denmark’s report.
Denmark’s net price index grew by 2.6% year-over-year in July, slightly less than the 2.7% recorded in June. This measure excludes indirect taxes and duties where feasible and adds subsidies that lower prices. The HICP at constant tax rates increased by 2.4% from July 2025. Statistics Denmark calculates the CPI based on approximately 23,000 price observations collected across roughly 1,600 shops, businesses, and institutions. The next update on consumer prices is scheduled for September 10.