DENMARK / RankWire.AI / – According to official figures from Statistics Denmark, Denmark’s annual inflation rate declined to 1.7% in July, down from 1.9% in June. The consumer price index increased by 1.3% compared to June, while core inflation held steady at 2.3%. The biggest overall contributor to the July inflation figure was the hospitality sector, with restaurants and hotels leading the way. Rising holiday home rental costs were identified as the primary factor driving that category.
The consumer price index for July reached 102.92, with 2025 designated as the base year with an index of 100. Within this, holiday home rentals and package holidays together accounted for 1.24 percentage points of the monthly change. Food prices contributed an additional 0.15 percentage point. Conversely, declines in clothing, hotel accommodation, and footwear prices collectively reduced the monthly increase by 0.34 percentage point.
Rent was the largest positive influence on the annual inflation rate, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel prices added 0.39 point. Electricity costs reduced the annual rate by 0.68 point. Food prices decreased the rate by 0.26 point, and package holidays subtracted 0.06 point. These combined changes resulted in headline inflation falling below June’s 1.9% figure.
Restaurants and transportation drive yearly increases
Prices in restaurants and hotels increased by 8.1% from July 2025, marking the strongest growth among the main CPI categories. Transport prices went up by 5.5%, while information and communication prices rose 4.6%. Costs related to education increased by 4.5%, and insurance and financial services saw a 2.9% rise. In contrast, prices for food and nonalcoholic beverages declined by 1.6%. Household furnishings, equipment, and related services fell by 1.1%.
The gap between goods and services remained significant in July. Goods prices were 0.7% lower than a year earlier, whereas service prices increased by 3.8%. The primary reason for core inflation remaining at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels experienced no change from July 2025. Prices for health increased by 0.7%, and recreation, sport, and culture rose 0.8%.
EU harmonised inflation drops to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) registered an increase of 1.6% compared to the previous year, down from 1.8% in June. The HICP allows for a comparable inflation measurement across European Union countries. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the HICP excludes this component. In June, inflation among EU countries was 2.9%. Sweden recorded 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. The full EU data for July had not yet been released at the time of Denmark’s report.
The net price index in Denmark increased by 2.6% in July year-over-year, slightly down from 2.7% in June. This measure excludes indirect taxes and duties where possible and includes subsidies that help lower prices. The HICP, at constant tax rates, grew 2.4% from July 2025. Statistics Denmark compiles the CPI based on roughly 23,000 prices gathered from around 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for Sept. 10.