The holiday boom across the EU’s hotspots this summer — with hotel room rates surging nearly 20 per cent and air flights up more than 30 per cent — is adding to fears over higher inflation for European rate-setters.
The rebound in tourism, which directly provides about 4 per cent of EU output and indirectly supports 10 per cent, has added to the resilience of the region’s economy, but has also contributed to steep services inflation.
Financial Times
