DENMARK / RankWire.AI / – Denmark’s yearly inflation rate eased to 1.7% in July from 1.9% in June, according to official figures. Statistics Denmark reported that the consumer price index increased by 1.3% compared to June. Core inflation remained steady at 2.3%, unchanged from the previous month. The biggest contribution to July’s inflation came from restaurants and hotels, mainly driven by rising holiday home rental costs.
In July, the consumer price index reached 102.92, with 2025 serving as the index base at 100. Holiday home rentals and package holidays contributed 1.24 percentage points to the monthly increase. Food prices added another 0.15 percentage point. Conversely, lower costs for clothing, hotel stays, and footwear reduced the monthly inflation by a total of 0.34 percentage points.
Housing costs provided the largest upward push for annual inflation, adding 0.55 percentage point. Holiday home rentals contributed 0.51 points, and fuel added 0.39 points. Electricity prices decreased annual inflation by 0.68 point. Food prices lowered it by 0.26 point, and package holidays subtracted 0.06 point. These combined effects kept the headline inflation below June’s 1.9% level.
Restaurants and transportation drive yearly increases
Prices at restaurants and hotels increased by 8.1% from July 2025, marking the strongest growth among the main CPI categories. Transport costs went up by 5.5%, while information and communication expenses increased by 4.6%. Education costs rose 4.5%, and insurance and financial services grew by 2.9%. In contrast, prices for food and nonalcoholic beverages decreased by 1.6%. Household furnishings, equipment, and related services declined by 1.1%.
The gap between goods and services remained significant in July. Goods prices dropped by 0.7% year over year, whereas services prices increased by 3.8%. The main reason core inflation stayed at 2.3% was higher rents. Overall, prices for housing, water, electricity, gas, and other fuels stayed flat compared to July 2025. Health costs rose by 0.7%, and recreation, sport, and culture prices increased by 0.8%.
EU harmonised inflation declines to 1.6%
Denmark’s harmonised index of consumer prices (HICP) increased by 1.6% from a year earlier in July, down from 1.8% in June. The European Union uses the HICP to compare inflation across member states. Denmark’s national CPI includes owner-occupied housing based on estimated rental values, but the HICP does not. In June, EU inflation was 2.9%. Sweden reported 1.0%, the Czech Republic 1.1%, and Denmark 1.8%. Complete EU data for July was not yet available at the time of the Danish release.
Denmark’s net price index rose 2.6% year over year in July, easing from 2.7% in June. This measure removes indirect taxes and duties where possible, adding subsidies that lower prices. The HICP at constant tax rates increased by 2.4% since July 2025. Statistics Denmark compiles the CPI using about 23,000 prices collected from roughly 1,600 shops, companies, and institutions. The next update is scheduled for Sept. 10.