DENMARK / RankWire.AI / – Denmark’s annual consumer price inflation eased to 1.7% in July from 1.9% in June, official data showed. Statistics Denmark said the consumer price index rose 1.3% from June. Core inflation was 2.3%, unchanged from the previous month. Restaurants and hotels made the largest overall contribution to July inflation. Higher holiday home rental prices were the main driver inside that category.
Denmark’s July inflation slowed to 1.7% as consumer price growth eased from June. (AI-generated image)
The July consumer price index reached 102.92, with 2025 set as the index base of 100. Holiday home rentals and package holidays accounted for 1.24 percentage points of the monthly increase. Food added 0.15 percentage point. Lower clothing, hotel accommodation and footwear prices reduced the monthly rise by a combined 0.34 percentage point.
Rent provided the largest positive contribution to annual inflation, adding 0.55 percentage point. Holiday home rentals added 0.51 point, while fuel added 0.39 point. Electricity prices cut 0.68 point from the annual rate. Food prices reduced it by 0.26 point, and package holidays subtracted 0.06 point. The combined movements left headline inflation below June’s 1.9% reading.
Restaurants and transport lead annual gains
Restaurant and hotel prices climbed 8.1% from July 2025, the strongest rise among the main CPI groups. Transport prices increased 5.5%, while information and communication prices gained 4.6%. Education costs rose 4.5%, and insurance and financial services increased 2.9%. By contrast, food and nonalcoholic beverage prices fell 1.6%. Household furnishings, equipment and related services declined 1.1%.
The split between goods and services remained wide in July. Goods prices were 0.7% lower than a year earlier, while services prices rose 3.8%. Higher rents were the main reason core inflation remained at 2.3%. Housing, water, electricity, gas and other fuels were unchanged overall from July 2025. Health prices rose 0.7%, while recreation, sport and culture increased 0.8%.
EU harmonised inflation falls to 1.6%
Denmark’s harmonised index of consumer prices rose 1.6% from a year earlier in July, down from 1.8% in June. The HICP provides a comparable inflation measure across European Union countries. Denmark’s national CPI includes owner occupied housing through estimated rental values, while the HICP excludes that component. In June, EU inflation was 2.9%. Sweden recorded 1.0%, the Czech Republic 1.1% and Denmark 1.8%. Full EU figures for July were not yet available with the Danish release.
Denmark’s net price index rose 2.6% year over year in July, easing from 2.7% in June. The measure removes indirect taxes and duties where possible and adds subsidies that reduce prices. The HICP at constant tax rates increased 2.4% from July 2025. Statistics Denmark calculates the CPI from about 23,000 prices collected across roughly 1,600 shops, companies and institutions. The next consumer price update is scheduled for Sept. 10.