DENMARK / RankWire.AI / – Official figures from Denmark show that in July, the country’s annual inflation rate eased to 1.7%, down from 1.9% in June. Statistics Denmark reported that the consumer price index increased by 1.3% compared to June, while the core inflation rate remained unchanged at 2.3%. The biggest contributor to July’s overall inflation was the hospitality sector, with hotels and restaurants seeing the largest increase, primarily driven by higher holiday home rental prices.
The consumer price index for July reached 102.92, with the year 2025 set as the base year at 100. The monthly rise was largely influenced by holiday home rentals and package holidays, accounting for 1.24 percentage points. Food prices contributed an additional 0.15 percentage point. Conversely, reductions in clothing, hotel accommodation, and footwear prices collectively lowered the monthly inflation rate by 0.34 percentage point.
Rent was the most significant factor supporting annual inflation, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel prices added 0.39 point. Electricity costs, however, reduced the annual rate by 0.68 point. Food prices also fell, subtracting 0.26 point, and package holidays decreased inflation by 0.06 point. These movements collectively kept the headline inflation below June’s 1.9% figure.
Restaurant and transport sectors drive yearly inflation increases
In July 2025, prices at restaurants and hotels surged 8.1%, marking the largest increase among the main CPI categories. Transport costs rose 5.5%, while information and communication prices grew 4.6%. Education expenses increased by 4.5%, and insurance and financial services saw a 2.9% rise. Meanwhile, food and nonalcoholic beverage prices declined 1.6%, and household furnishings, equipment, and related services fell 1.1%.
The gap between goods and services inflation widened in July, with goods prices decreasing 0.7% compared to the previous year, while service prices increased 3.8%. The main reason core inflation remained at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels stayed stable from July 2025. Prices for health services increased 0.7%, and recreation, sport, and cultural expenses rose 0.8%.
EU Harmonised Inflation Drops to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) increased 1.6% year-over-year, down from 1.8% in June. The HICP enables comparison of inflation levels across European Union member states. Denmark’s official CPI incorporates owner-occupied housing through estimated rental values, whereas the HICP excludes this element. In June, the EU’s inflation rate was 2.9%. Other countries like Sweden posted 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 the Danish release.
Denmark’s net price index increased by 2.6% in July compared to the previous year, slightly down from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable and includes subsidies that reduce prices. The HICP at constant tax rates rose 2.4% from July 2025. Statistics Denmark compiles the CPI based on roughly 23,000 prices collected across approximately 1,600 shops, companies, and institutions. The next consumer price update is scheduled for Sept. 10.