DENMARK / RankWire.AI / – In July, Denmark saw a reduction in its annual consumer price inflation from 1.9% in June to 1.7%, according to Statistics Denmark. The month also experienced a 1.3% increase in consumer prices compared to June, primarily driven by notable seasonal rises in several categories related to travel. Despite these changes, core inflation held firm at 2.3%, unchanged from the previous month. Service sectors continued to outpace goods in price growth, with restaurants, hotels, holiday home rentals, and transportation among the key contributors to the July data.
At 102.92, the consumer price index for July used 2025 as its base year of 100. The combined effect of holiday home rentals and package holidays contributed 1.24 percentage points to the monthly rise, with food adding another 0.15 point. Conversely, clothing, hotel accommodations, and footwear partially offset these gains, collectively decreasing the monthly change by 0.34 percentage point. This resulted in monthly inflation remaining significantly above the annual figure.
The largest driver of Denmark’s yearly inflation was rent, which contributed 0.55 percentage point. Holiday home rentals added 0.51 point, while fuel prices contributed 0.39 point. Electricity costs, however, led to a reduction of 0.68 point in the annual rate, and food prices lowered it by 0.26 point. Package holidays also detracted 0.06 point. These movements collectively helped lower the headline inflation rate from June’s 1.9% level.
Price increases in services continue to surpass those of goods
In July, prices for restaurants and hotels grew by 8.1% from 2025, marking the highest increase among key consumer segments. Transport prices rose 5.5%, while costs related to information and communication grew by 4.6%. Education expenses increased by 4.5%, and insurance along with financial services went up by 2.9%. Meanwhile, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services saw a 1.1% decrease compared to the previous year.
Throughout July, the contrast between goods and services remained clear. Service prices rose by 3.8% from a year earlier, whereas goods prices fell by 0.7%. The persistent high rents were primarily responsible for maintaining the 2.3% core inflation rate. Meanwhile, prices for housing, water, electricity, gas, and other fuels showed no significant annual change. Health costs increased by 0.7%, and recreation, sport, and culture expenses went up by 0.8%. These figures reaffirm that service costs continue to outpace those for tangible goods.
Harmonised inflation also eases in July
Denmark’s harmonised index of consumer prices rose 1.6% from July 2025, slightly below June’s 1.8%. This index facilitates cross-country inflation comparisons within the European Union. While Denmark’s national consumer price index includes owner-occupied housing based on estimated rental values, the harmonised version excludes this component. In June, Sweden recorded harmonised inflation of 1.0%, and the Czech Republic reported 1.1%. However, detailed July figures for these countries were not yet available at the time of the Danish release.
The net price index increased by 2.6% year-over-year in July, down from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable and incorporates subsidies that help lower consumer costs. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark calculates the consumer price index from roughly 23,000 prices gathered across approximately 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.