It will cost you

Worries about dearer food and fuel

Certain ideas of Europe

AS Europe's political leaders wrangle over whether and how to proceed with the Lisbon treaty, average citizens are focused on more tangible concerns: the sky-rocketing costs of daily essentials, including food and fuel. Protesting truck drivers in Spain, France and Britain are just the most visible signs of frustration across the region.

New numbers confirm what consumers had already sensed. This morning comes news that inflation in Britain rose by 3.3% in May, a higher-than-expected jump that puts it at a 16-year high. This is likely to put pressure on the Bank of England to raise interest rates.

Figures released on Monday by Eurostat tell a similar story in the eurozone. The annual rate of inflation in the 15 states that use the euro hit a record 3.7% in May. This is the highest level of inflation since 1996, when the statistics office began using its current methodology. The May inflation rate compares with 3.3% in April and 1.9% in May 2007. Food prices in the eurozone were up 6.4% in May and transport costs rose 5.9%.

Watching inflation creep up, the president of the European Central Bank has hinted that a rate increase is possible at its next meeting. Thus far, the ECB has been reluctant to increase rates amid signs that the eurozone economy is slowing. Its interest-rate policy has contrasted with those of the British and American central banks, which have lowered rates. This has, in part, led to the euro's strengthening against the currencies of those countries.

France blamed the European Commission on Monday for Ireland's rejection of the Lisbon treaty, saying it had not done enough to address average peoples' concerns about higher food and fuel prices. While this looks like an attempt to deflect blame for the defeat, the boffins in Brussels would be wise to take note of consumer worries.

Reuse this contentThe Trust Project