DENMARK / RankWire.AI / – Denmark’s annual inflation rate slowed to 1.7% in July from 1.9% in June, official figures showed. Statistics Denmark said consumer prices rose 1.3% from the previous month. Core inflation held at 2.3%, matching the June reading. Price increases in restaurants and hotels remained a major influence on the index. Holiday home rentals also made a strong contribution during the summer travel period.
The consumer price index stood at 102.92 in July, using 2025 as the base year of 100. Holiday home rentals and package holidays together added 1.24 percentage points to the monthly increase. Food prices contributed another 0.15 point. Clothing, hotel accommodation and footwear moved in the opposite direction. Those categories reduced the monthly increase by a combined 0.34 percentage point.
Rent added 0.55 percentage point to the annual inflation rate, making it the largest positive contributor. Holiday home rentals added 0.51 point, while fuel contributed 0.39 point. Electricity prices lowered annual inflation by 0.68 point. Food prices reduced the rate by another 0.26 point. Package holidays trimmed 0.06 point from the yearly reading. Together, the category movements brought headline inflation below its June level.
Services continue to outpace goods
Restaurant and hotel prices increased 8.1% from a year earlier, the strongest rise among the main consumer categories. Transport prices climbed 5.5%, while information and communication costs rose 4.6%. Education prices increased 4.5%, and insurance and financial services gained 2.9%. Food and nonalcoholic beverage prices fell 1.6% over the same period. Household furnishings, equipment and related services declined 1.1%.
Services prices rose 3.8% from July 2025, while goods prices fell 0.7%. Higher rents remained the main factor behind the 2.3% core inflation rate. Housing, water, electricity, gas and other fuels showed no overall annual change. Health prices increased 0.7% from a year earlier. Recreation, sport and culture prices rose 0.8%. The figures showed a clear gap between service inflation and goods price changes.
Harmonised inflation rate also declines
Denmark’s harmonised index of consumer prices rose 1.6% from July 2025, compared with 1.8% in June. The measure allows inflation comparisons across European Union countries. Denmark’s national CPI includes owner occupied housing through estimated rental values, while the harmonised measure excludes that component. In June, Denmark’s harmonised inflation rate stood at 1.8%. Sweden recorded 1.0% and the Czech Republic reported 1.1%. Complete EU inflation figures for July were not yet available.
The net price index increased 2.6% year over year in July, down from 2.7% in June. That measure removes indirect taxes and duties where possible and includes subsidies that reduce consumer prices. The harmonised index at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the CPI from about 23,000 prices across roughly 1,600 shops, companies and institutions. The agency has scheduled its next consumer price update for Sept. 10.