Official data released this morning confirms that inflation has accelerated across both Europe and the United Kingdom, driven primarily by a renewed surge in utility and energy bills.
Here is how the July consumer price indexes (CPI) compare side-by-side:
🔎 Key Drivers Behind the Numbers
- Eurozone Energy Squeeze: Eurostat confirmed the preliminary headline rate of 2.9%. Energy costs accelerated sharply due to renewed geopolitical tensions impacting supply routes. Germany and France experienced the steepest regional pickups, hitting 2.8% and 2.4% respectively.
- UK Utility Surge: The Office for National Statistics (ONS) reported that a 13% jump in the regulated energy tariff cap at the start of July pushed headline inflation to a four-month high. This was partially offset by a slowdown in motor fuel and pump prices.
- Central Bank Friction: Both prints remain stuck well above the 2.0% target. The figures are increasing market bets that the European Central Bank (ECB) and the Bank of England (BoE) will keep interest rates higher for longer to prevent these price spikes from becoming sticky.
Comment Bellow:
Would you like to look at the individual country-by-country breakdown within the Eurozone, or review the upcoming autumn budget dates for how these governments plan to respond to the cost-of-living squeeze?
All responses may include mistakes. For financial advice, consult a professional. Learn more
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