DENMARK / RankWire.AI / – Official figures reveal that Denmark’s annual consumer price inflation eased 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 steady at 2.3%, showing no change from the previous month. The main contributors to July’s inflation were restaurants and hotels, primarily driven by higher holiday home rental prices within this category.
The consumer price index for July reached 102.92, with 2025 established 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 change. Food prices added another 0.15 percentage point. Conversely, declines in clothing, hotel accommodations, and footwear prices collectively reduced the monthly increase by 0.34 percentage point.
For the year, rent was the most significant positive factor, accounting for a 0.55 percentage point rise. Holiday home rentals contributed 0.51 point, and fuel prices added 0.39 point. Electricity costs, however, decreased the annual rate by 0.68 point. Food prices lowered it by 0.26 point, while package holidays contributed a small subtraction of 0.06 point. These various movements resulted in headline inflation falling below June’s 1.9% figure.
Restaurants and transportation sectors dominate annual inflation increases
Prices in the restaurant and hotel industry surged by 8.1% from July 2025, marking the highest increase among the main CPI categories. Transport prices grew by 5.5%, while information and communication prices rose by 4.6%. Education costs increased by 4.5%, and insurance and financial services saw a 2.9% rise. In contrast, food and nonalcoholic beverage prices fell by 1.6%. Household furnishings, equipment, and related services experienced a decline of 1.1%.
The gap between goods and services inflation widened in July. Prices for goods were 0.7% lower than a year earlier, while service prices increased by 3.8%. The main reason core inflation stayed at 2.3% was higher rents. Overall, housing, water, electricity, gas, and other fuels remained unchanged compared to July 2025. Prices for health services increased by 0.7%, and recreation, sport, and culture costs rose by 0.8%.
EU-wide inflation, measured by HICP, drops 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 to measure inflation comparably across member countries. Denmark’s national CPI includes owner-occupied housing costs based on estimated rental values, but the HICP excludes this component. In June, EU inflation was 2.9%. Sweden recorded a 1.0% increase, the Czech Republic 1.1%, and Denmark 1.8%. Complete EU figures for July were not yet available at the time of the Danish release.
Denmark’s net price index grew by 2.6% year over year in July, a slight decline from 2.7% in June. This measure excludes indirect taxes and duties where possible and accounts for subsidies that reduce prices. The HICP at constant tax rates increased by 2.4% from July 2025. Statistics Denmark compiles the CPI based on roughly 23,000 prices collected across about 1,600 shops, companies, and institutions. The next consumer price report is scheduled for September 10.