DENMARK / RankWire.AI / – In the broader context of inflation trends across Europe, Denmark’s annual consumer price inflation eased to 1.7% in July from 1.9% in June, according to Statistics Denmark. The month saw consumer prices increase by 1.3% from June, driven largely by significant seasonal jumps in several travel-related sectors. Despite the monthly rise, core inflation held steady at 2.3%, unchanged from the previous month. Notably, services continued to experience more robust price increases compared to goods, with categories such as restaurants, hotels, holiday home rentals, and transport playing prominent roles in the July figures.
The consumer price index reached 102.92 in July, with 2025 set as the base year of 100. Holiday home rentals and package holidays combined contributed 1.24 percentage points to the monthly increase, while food added another 0.15 percentage point. In contrast, clothing, hotel accommodation, and footwear partially offset these gains, collectively reducing the monthly change by 0.34 percentage point. Consequently, monthly inflation remained well above the annual rate.
Rent was the largest contributor to Denmark’s annual inflation, accounting for an increase of 0.55 percentage point. Holiday home rentals contributed 0.51 point, while fuel prices added 0.39 point. Conversely, 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, and these combined movements helped reduce the headline inflation rate from the 1.9% level recorded in June.
Service sector prices continue to outpace goods
Prices for restaurants and hotels increased by 8.1% from July 2025, marking the largest rise among key consumer categories. Transport costs advanced 5.5%, while expenses for information and communication grew 4.6%. Education prices rose by 4.5%, and insurance along with financial services increased 2.9%. Meanwhile, prices for food and nonalcoholic beverages declined 1.6%. Household furnishings, equipment, and related services also saw a 1.1% decrease from the previous year.
The divergence between goods and services persisted in July. Service prices increased by 3.8% compared to the previous year, whereas prices for goods fell by 0.7%. Elevated rents continued to be the primary factor supporting the 2.3% core inflation rate. Housing, water, electricity, gas, and other fuels showed no significant change on an annual basis. Prices for health increased by 0.7%, with recreation, sport, and culture rising 0.8%. These figures emphasize that service costs continue to climb at a faster pace than physical goods prices.
Lower readings also appear in harmonised inflation figures
Denmark’s harmonised index of consumer prices rose by 1.6% from July 2025, a decline from 1.8% in June. This measure facilitates inflation comparisons across European Union member states. Denmark’s national consumer price index incorporates owner-occupied housing through estimated rental values, while the harmonised measure excludes this component. In June, Sweden reported harmonised inflation of 1.0%, with the Czech Republic at 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, slightly easing from 2.7% in June. This index adjusts for indirect taxes and duties where applicable and accounts for subsidies that reduce consumer prices. The harmonised index at constant tax rates grew by 2.4% from July 2025. Statistics Denmark derives the consumer price index from approximately 23,000 prices collected across around 1,600 shops, companies, and institutions. The next update of Denmark’s consumer price figures is scheduled for Sept. 10.