DENMARK / RankWire.AI / – According to official figures, Denmark’s annual inflation rate slowed to 1.7% in July from 1.9% in June. Statistics Denmark indicated that the consumer price index increased by 1.3% compared to June. Meanwhile, core inflation remained unchanged at 2.3% from the previous month. The most significant overall contribution to July’s inflation came from restaurants and hotels, with higher holiday home rental costs serving as the primary factor within that sector.
The consumer price index for July reached 102.92, with 2025 designated as the base year with an index value of 100. The increase in holiday home rentals and package holidays contributed 1.24 percentage points to the monthly rise. Food prices added another 0.15 percentage point, whereas reductions in clothing, hotel accommodation, and footwear prices collectively decreased the monthly increase by 0.34 percentage point.
Rent levels provided the largest positive impact on the annual inflation rate, contributing 0.55 percentage points. Holiday home rentals added 0.51 point, and fuel contributed 0.39 point. Conversely, electricity prices decreased the annual rate by 0.68 point. Food prices lowered it by 0.26 point, and package holidays subtracted 0.06 point. These combined movements kept the headline inflation rate below June’s 1.9% figure.
Leading Contributors to Yearly Price Hikes Are Restaurants and Transport
Prices at restaurants and hotels increased by 8.1% from July 2025, making this the strongest growth among the main CPI categories. Transport costs went up by 5.5%, while information and communication expenses rose by 4.6%. Education costs climbed 4.5%, and insurance along with financial services increased by 2.9%. In contrast, prices for food and nonalcoholic beverages declined 1.6%. Household furnishings, equipment, and related services saw a decrease of 1.1%.
The gap between goods and services persisted in July. Goods prices were 0.7% lower than the previous year, whereas service prices increased by 3.8%. The main driver for core inflation remaining at 2.3% was higher rents. Overall, prices for housing, water, electricity, gas, and other fuels stayed flat compared to July 2025. Additionally, health-related prices rose 0.7%, with recreation, sport, and culture costs climbing 0.8%.
European Union’s Harmonised Index of Consumer Prices Decreases to 1.6%
In July, Denmark’s harmonised index of consumer prices (HICP) experienced a 1.6% increase from the previous year, down from 1.8% in June. The European Union uses the HICP to measure inflation comparably across member states. Denmark’s national CPI accounts for owner-occupied housing by including estimated rental values, a component excluded from the HICP. In June, EU inflation was 2.9%. Sweden registered 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. The full EU figures for July had not yet been released alongside Denmark’s report.
The net price index in Denmark increased by 2.6% year-over-year in July, a decrease from 2.7% in June. This indicator adjusts for indirect taxes and duties where applicable and factors in subsidies that help lower prices. At constant tax rates, the HICP grew by 2.4% from July 2025. Statistics Denmark calculates the CPI based on roughly 23,000 prices collected across about 1,600 retail outlets, companies, and institutions. The next update on consumer prices is scheduled for Sept. 10.