DENMARK / RankWire.AI / – Official data indicated that Denmark’s yearly inflation rate slowed down to 1.7% in July from 1.9% in June. Statistics Denmark reported that consumer prices increased by 1.3% compared to the previous month. The core inflation rate remained steady at 2.3%, consistent with the June figure. Notably, price hikes in restaurants and hotels continued to significantly influence the index, with summer travel season contributions from holiday home rentals also playing a key role.
In July, the consumer price index reached 102.92, based on 2025 as the index’s base year of 100. The combined impact of holiday home rentals and package holidays contributed 1.24 percentage points to the monthly rise, while food prices added another 0.15 point. Conversely, clothing, hotel accommodation, and footwear experienced declines, together reducing the monthly growth by 0.34 percentage point.
The largest single contributor to the annual inflation was rent, which added 0.55 percentage point. Holiday home rentals and fuel followed closely, contributing 0.51 and 0.39 points respectively. Electricity prices helped lower the annual inflation rate by 0.68 point, and food prices cut another 0.26 point. Package holidays slightly reduced the yearly figure by 0.06 point. Collectively, these movements caused headline inflation to fall below its June level.
Service sector inflation outpaces goods
Prices for restaurants and hotels surged 8.1% from the previous year, marking the strongest growth among major consumer categories. Transport costs increased 5.5%, while costs for information and communication went up 4.6%. Education prices climbed 4.5%, and insurance and financial services rose 2.9%. Meanwhile, food and nonalcoholic beverage prices declined 1.6% over the same period. Household furnishings, equipment, and related services saw a 1.1% decrease.
From July 2025 to July 2026, service prices grew by 3.8%, while goods prices decreased by 0.7%. The persistent rise in rents remained the main driver behind the 2.3% core inflation rate. Housing, water, electricity, gas, and other fuels showed no overall change on an annual basis. Prices for health increased by 0.7%, recreation, sport, and culture by 0.8%. The data clearly highlights a notable divergence between service sector inflation and that of goods.
European Union’s harmonised inflation also shows downward movement
The harmonised index of consumer prices for Denmark increased by 1.6% from July 2025, down from 1.8% in June. This metric facilitates inflation comparisons across European Union member states. Denmark’s national CPI considers owner-occupied housing via estimated rental values, which the harmonised measure excludes. In June, Denmark’s harmonised inflation rate was 1.8%. Sweden reported 1.0%, and the Czech Republic indicated 1.1%. Complete EU inflation figures for July have yet to be published.
The net price index grew by 2.6% year-over-year in July, slightly below the 2.7% increase seen in June. This measure adjusts for indirect taxes and duties where applicable and accounts for subsidies that lower consumer costs. The harmonised index, at constant tax rates, rose by 2.4% from July 2025. Statistics Denmark calculates the CPI based on approximately 23,000 prices collected from roughly 1,600 shops, companies, and institutions. The agency’s next consumer price update is scheduled for September 10.