DENMARK / RankWire.AI / – According to Statistics Denmark, Denmark’s yearly consumer price inflation eased from 1.9% in June to 1.7% in July. The increase in consumer prices from June was 1.3%, driven largely by sharp seasonal rises in various travel-related sectors. Meanwhile, core inflation stayed constant at 2.3%, showing no change from the previous month. Service sectors continued to experience stronger price increases compared to goods, with categories such as restaurants, hotels, holiday home rentals, and transport significantly influencing July’s figures.
The consumer price index for July hit 102.92, with 2025 serving as the base year of 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly rise, while food added another 0.15 percentage point. Conversely, clothing, hotel accommodation, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. These combined effects resulted in monthly inflation remaining well above the annual rate.
In terms of annual contributions, rent was the largest factor, adding 0.55 percentage point, followed by holiday home rentals at 0.51 point, and fuel at 0.39 point. Conversely, electricity prices decreased the annual rate by 0.68 point, and food prices lowered it by 0.26 point. Package holidays also subtracted 0.06 point from the annual inflation figure. The interplay of these elements helped bring the overall inflation rate down from the 1.9% level observed in June.
Service Sector Prices Continue to Outpace Goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the largest rise among major consumer categories. Transport costs advanced 5.5%, while expenses related to information and communication grew by 4.6%. Education costs saw a 4.5% increase, and insurance and financial services rose by 2.9%. In contrast, food and nonalcoholic beverage prices declined by 1.6%, and household furnishings, equipment, and related services fell by 1.1% compared to the previous year.
Throughout July, the gap between goods and services remained notable, with services prices climbing 3.8% on an annual basis, whereas goods prices decreased by 0.7%. The primary driver of the persistent 2.3% core inflation rate was higher rents, with housing, water, electricity, gas, and other fuels showing no significant change over the year. Prices for health increased by 0.7%, and recreation, sport, and culture prices grew by 0.8%. Overall, these figures indicate that service costs continue to outpace the prices of physical goods.
Harmonised Consumer Price Index Also Trends Lower
The harmonised index of consumer prices in Denmark rose by 1.6% from July 2025, a decrease from 1.8% in June. This metric facilitates inflation comparisons across European Union countries. Denmark’s national consumer price index accounts for owner-occupied housing through estimated rental values, a component excluded in the harmonised measure. In June, Sweden recorded harmonised inflation of 1.0%, and the Czech Republic reported 1.1%, though complete July figures for these nations were not yet available alongside Denmark’s release.
The net price index increased by 2.6% year over year in July, slightly down from 2.7% in June. This measure, which excludes indirect taxes and duties where possible but accounts for subsidies that reduce prices, showed at constant tax rates an increase of 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on around 23,000 prices gathered from roughly 1,600 shops, companies, and institutions. The next update of Denmark’s consumer prices is scheduled for Sept. 10.