DENMARK / RankWire.AI / – Official data revealed that Denmark’s annual consumer price inflation decreased to 1.7% in July from 1.9% in June. The consumer price index rose by 1.3% from June, according to Statistics Denmark. Meanwhile, core inflation held steady at 2.3%, unchanged from the previous month. The primary contributor to July’s inflation was the hospitality sector, with restaurants and hotels making the largest overall impact, driven mainly by higher rental prices for holiday homes.
The consumer price index for July reached 102.92, with 2025 serving as the base year at an index value of 100. Within that month, holiday home rentals and package holidays contributed 1.24 percentage points to the overall increase, while food prices added 0.15 point. Conversely, reductions in clothing, hotel accommodations, and footwear prices collectively lowered the monthly rise by 0.34 percentage points.
Rent levels were the largest positive factor influencing the annual inflation rate, adding 0.55 percentage points. Holiday home rentals and fuel contributed 0.51 and 0.39 points respectively. Electricity costs, however, decreased the annual rate by 0.68 point. Food prices lowered it by 0.26 point, with package holidays subtracting 0.06 point. The combined effects resulted in headline inflation falling below June’s 1.9% figure.
Rise in restaurants and transport costs dominate annual inflation figures
Compared to July 2025, prices at restaurants and hotels increased by 8.1%, marking the steepest gain among the main CPI categories. Transport prices grew by 5.5%, and information and communication costs rose 4.6%. Education expenses went up 4.5%, and insurance plus financial services increased 2.9%. In contrast, prices for food and nonalcoholic beverages declined by 1.6%, and household furnishings, equipment, and related services decreased by 1.1%.
The divergence between goods and services inflation persisted in July. Goods prices were 0.7% lower than a year earlier, whereas services saw a 3.8% increase. The main factor behind core inflation remaining at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels remained unchanged from July 2025. Prices for health increased by 0.7%, while recreation, sport, and culture went up by 0.8%.
EU Harmonised Inflation Declines to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% compared to the previous year, down from 1.8% in June. The European Union uses the HICP as a comparable inflation indicator across member states. Denmark’s national CPI incorporates owner-occupied housing via estimated rental values, whereas the HICP excludes that component. In June, EU-wide 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 been released at the time of the Danish data publication.
Denmark’s net price index increased by 2.6% year-over-year in July, a slight slowdown from June’s 2.7%. This index adjusts for indirect taxes and duties where applicable and accounts for subsidies that reduce prices. The HICP at constant tax rates registered a 2.4% rise from July 2025. Statistics Denmark gathers data from approximately 23,000 prices across roughly 1,600 shops, companies, and institutions. The next consumer price update is scheduled for Sept. 10.