The European Central Bank confirmed it will raise rates in July.
- Key interest rates will go up by 25 basis points – the first rate hike in 11 years!
A bigger rate hike should be expected in September if inflation doesn’t cool.
#1. Inflation: Eurozone inflation hit an all-time high of 8.1% last month. The war in Ukraine accelerated global inflation and put pressure on the EU to find alternatives to Russian gas.
#2. Oil and gas: The cost of filling up the average family car in the U.K. passed €100 ($125) for the first time ever. Average U.K. gas prices are around $8.60 per gallon!
- The cost of unleaded petrol is now 37% more expensive in the U.K. than a year ago. Diesel is 38% more expensive.
BONUS. Electric cars: In a look to the future, European lawmakers voted to ban the sale of new diesel and gas cars in the EU starting in 2035.