DENMARK / RankWire.AI / – Official figures indicated that Denmark’s annual inflation rate dropped to 1.7% in July from 1.9% in June. Statistics Denmark reported a 1.3% rise in the consumer price index since June. Meanwhile, core inflation stayed constant at 2.3% from the previous month. The most significant overall contribution to July inflation came from restaurants and hotels, driven primarily by increased holiday home rental costs within that sector.
The consumer price index for July reached 102.92, with 2025 serving as the index base year at 100. Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase. Food prices added 0.15 percentage point. Conversely, reductions in clothing, hotel accommodation, and footwear prices collectively decreased the monthly rise by 0.34 percentage point.
The largest positive contribution to annual inflation came from rent, which added 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. Electricity prices, however, subtracted 0.68 point from the annual rate. Food prices lowered the rate by 0.26 point, and package holidays reduced it by 0.06 point. These combined movements resulted in headline inflation being below June’s 1.9% figure.
Restaurants and transport lead annual increases
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the strongest rise among the main CPI categories. Transport costs grew by 5.5%, while information and communication prices saw a 4.6% increase. Education expenses rose by 4.5%, and insurance and financial services went up by 2.9%. In contrast, prices for food and nonalcoholic beverages decreased by 1.6%. Household furnishings, equipment, and related services experienced a decline of 1.1%.
In July, the gap between goods and services inflation remained significant. Goods prices fell by 0.7% compared to the previous year, whereas services prices increased by 3.8%. Elevated rents were the primary factor keeping core inflation at 2.3%. The prices of housing, water, electricity, gas, and other fuels remained steady from July 2025. Prices for health increased by 0.7%, while recreation, sport, and culture rose by 0.8%.
EU harmonised inflation drops to 1.6%
Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% year-over-year in July, down from 1.8% in June. The European Union uses the HICP to measure inflation comparably across member countries. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the HICP does not include this component. In June, EU inflation was 2.9%. Sweden recorded 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. The full EU figures for July had not yet been released at the time of Denmark’s report.
Denmark’s net price index increased by 2.6% in July compared to the previous year, easing from 2.7% in June. This measure accounts for indirect taxes and duties where applicable and subtracts subsidies that reduce prices. The HICP at constant tax rates rose by 2.4% from July 2025. Statistics Denmark derives the CPI from approximately 23,000 prices collected across around 1,600 shops, companies, and institutions. The next update for consumer prices is scheduled for Sept. 10.