DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual inflation rate dropped to 1.7% in July from 1.9% in June. The Statistics Denmark report indicated that the consumer price index increased by 1.3% compared to June. Meanwhile, core inflation remained unchanged at 2.3% from the previous month. The biggest contribution to July’s inflation came from restaurants and hotels, driven primarily by rising holiday home rental costs.
The consumer price index for July hit 102.92, with 2025 serving as the base year at 100. Holiday home rentals and package holidays together contributed 1.24 percentage points to the monthly rise, while food prices added 0.15 points. Conversely, decreases in clothing, hotel accommodation, and footwear prices reduced the overall monthly increase by 0.34 points.
Rent experienced the largest positive impact on annual inflation, adding 0.55 percentage points. Holiday home rentals contributed 0.51 points, and fuel prices added 0.39 points. Electricity costs, however, decreased annual inflation by 0.68 points. Food costs lowered it by 0.26 points, and package holidays subtracted 0.06 points, resulting in an overall headline inflation rate below June’s 1.9% figure.
Restaurants and Transport Drive Yearly Price Gains
Prices at restaurants and hotels increased by 8.1% from July 2025, marking the highest growth among the main CPI categories. Transport costs rose by 5.5%, with information and communication expenses gaining 4.6%. Education costs went up by 4.5%, while insurance and financial services increased by 2.9%. In contrast, prices for food and nonalcoholic beverages declined 1.6%, and household furnishings, equipment, and related services fell 1.1%.
In July, the gap between goods and services remained significant. Goods prices fell by 0.7% compared to the previous year, whereas services prices increased by 3.8%. The primary factor keeping core inflation at 2.3% was higher rent prices. Overall, housing, water, electricity, gas, and other fuels saw no change from July 2025. Prices for health services increased by 0.7%, and recreation, sport, and culture costs went up by 0.8%.
EU-Wide Inflation Rate Declines to 1.6%
Denmark’s harmonised consumer price index grew by 1.6% year-over-year in July, down from 1.8% in June. The European Union’s HICP allows for comparable inflation measurement across member states. Denmark’s national CPI accounts for owner-occupied housing via estimated rental values, a component excluded from the HICP. In June, EU inflation stood at 2.9%. Sweden recorded 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Full EU figures for July had not yet been released at the time of Denmark’s data publication.
The net price index in Denmark increased by 2.6% year-over-year in July, a slight slowdown from 2.7% in June. This index adjusts for indirect taxes and duties where possible, while factoring in subsidies that lower prices. The HICP at constant tax rates increased by 2.4% from July 2025. Statistics Denmark compiles the CPI based on approximately 23,000 prices collected from around 1,600 shops, companies, and institutions. The next update is scheduled for September 10.