DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual consumer price inflation decreased to 1.7% in July from 1.9% in June. According to Statistics Denmark, the consumer price index increased by 1.3% compared to June. Meanwhile, core inflation remained steady at 2.3%, showing no change from the previous month. Notably, restaurants and hotels contributed the most to July’s overall inflation, driven primarily by rising holiday home rental costs in that category.
The consumer price index for July reached 102.92, with 2025 set as the baseline index of 100. Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase. Food prices accounted for an additional 0.15 percentage point. Conversely, declines in clothing, hotel accommodation, and footwear prices collectively reduced the monthly inflation rate by 0.34 percentage point.
The largest annual contribution to inflation came from rent, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel prices added 0.39 point. Electricity costs, on the other hand, subtracted 0.68 point from the annual rate. Food prices also reduced the rate by 0.26 point, and package holidays decreased it by 0.06 point. These combined movements resulted in headline inflation falling below June’s 1.9% figure.
Restaurants and transportation drive yearly increases
Prices in restaurants and hotels rose by 8.1% from July 2025, making it the highest increase among the main CPI categories. Transport costs increased by 5.5%, while information and communication prices grew by 4.6%. Education expenses went up 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 experienced a 1.1% decrease.
The division between goods and services remained broad in July. Goods prices fell by 0.7% compared to the previous year, whereas service costs rose by 3.8%. The primary factor maintaining core inflation at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels remained stable since July 2025. Prices for health increased by 0.7%, and recreation, sport, and culture costs rose by 0.8%.
EU Harmonised Inflation Drops to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% from a year earlier, down from 1.8% in June. The European Union uses the HICP to provide a comparable inflation measurement across member countries. Denmark’s national CPI includes owner-occupied housing based on estimated rental values, whereas the HICP excludes this component. In June, EU-wide inflation was at 2.9%. Sweden recorded 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. The full EU figures for July had not been released at the time of Denmark’s report.
Denmark’s net price index increased by 2.6% year-over-year in July, down from 2.7% in June. This measure adjusts for indirect taxes and duties where applicable and adds subsidies that lower prices. The HICP at constant tax rates rose by 2.4% from July 2025. Statistics Denmark calculates the CPI based on roughly 23,000 prices collected across about 1,600 shops, companies, and institutions. The next update on consumer prices is scheduled for Sept. 10.