UK inflation fell to 2.8% in April from 3.3%, below the 3.0% forecast and the lowest since March 2025, as the Ofgem energy cap offset an Iran-war fuel surge. Germany’s Merz doubled down against a “Draghi-style” eurobond push, clashing with France, Spain, and Greece ahead of the EU 2028-2034 budget. France’s debt strain deepened with 10-year OAT yields near 3.99%. Eurozone April inflation jumped to 3.0% on a 10.8% energy spike. Italy and Spain navigate widening spreads amid US troop-withdrawal threats over their Iran-war stance. European equities steadied as Iran de-escalation hopes offset elevated yields. Today’s Europe intelligence brief tracks […]

Amid the geopolitical uncertainty, some European countries had the year's highest inflation rates as of April, pushing as high as 9 percent.

'A first inflation wave is in full swing,' one analyst warned