DENMARK / RankWire.AI / – In Denmark, July saw a slowdown in the annual consumer price inflation rate, which declined to 1.7% from 1.9% in June, according to data from Statistics Denmark. The month experienced a 1.3% rise in consumer prices compared to June, driven by notable seasonal increases across several travel-related sectors. Meanwhile, core inflation held steady at 2.3%, the same as the previous month. The growth in service prices outpaced that of goods, with restaurants, hotels, holiday home rentals, and transportation being key contributors to the July figures.
The consumer price index for July reached 102.92, with 2025 designated as the base year set at 100. The combined impact of holiday home rentals and package holidays added 1.24 percentage points to the monthly increase, while food prices contributed an additional 0.15 percentage point. Conversely, categories such as clothing, hotel accommodations, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. As a result, monthly inflation remained notably higher than the annual rate.
The largest annual contribution to Denmark’s inflation rate came from rent, adding 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel added 0.39 point. On the other hand, electricity prices decreased the annual rate by 0.68 point, and food prices lowered it by 0.26 point. Package holidays subtracted 0.06 point. These movements collectively helped reduce the headline inflation from the 1.9% level recorded in June.
Prices for services continue to outpace those for goods
In July 2025, restaurant and hotel prices rose by 8.1%, marking the highest increase among the main consumer groups. Transport prices advanced 5.5%, while costs for information and communication grew by 4.6%. Education expenses increased by 4.5%, and insurance along with financial services rose 2.9%. Conversely, prices for food and nonalcoholic beverages declined by 1.6%. Households experienced a 1.1% decrease in furnishings, equipment, and related services compared to the previous year.
The disparity between goods and services persisted during July. Service costs increased by 3.8% annually, whereas prices for goods fell 0.7%. Elevated rents remained the primary factor supporting the 2.3% core inflation rate. Prices for housing, water, electricity, gas, and other fuels showed no significant change on an annual basis. Healthcare costs increased by 0.7%, and recreation, sport, and culture expenses went up by 0.8%. These figures indicate that service prices continued to grow faster than those for tangible goods.
Harmonised inflation rate also dips
Denmark’s harmonised index of consumer prices rose by 1.6% in July 2025, down from 1.8% in June. This metric is used for comparing inflation across European Union nations. Denmark’s national consumer price index considers owner-occupied housing through estimated rental values, which the harmonised measure excludes. In June, Sweden reported harmonised inflation of 1.0%, while the Czech Republic’s figure was 1.1%. Complete comparable data for July was not yet available at the time of the Danish release.
The net price index increased by 2.6% year-over-year in July, easing from 2.7% in June. This measure accounts for indirect taxes and duties where applicable and incorporates subsidies that lower consumer prices. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark compiles the consumer price index based on around 23,000 prices collected across roughly 1,600 shops, companies, and institutions. The next update on Denmark’s consumer prices is scheduled for Sept. 10.