National data released Friday shows a divergent picture across the continent. France saw its inflation rate climb to 2.8% from 2.5%, while Italy’s figure jumped to 3.2% from 2.7%. Conversely, Spain held steady at 3.2%, and key German states reported a decline, aided by a government-subsidized fuel discount program for May and June. Despite these localized interventions, the underlying trend remains concerning for policymakers.

Economists warn that the peak of this inflationary cycle has not yet arrived. Nadia Gharbi, senior economist at Pictet Wealth Management, anticipates prices will continue to climb until August, contingent on Middle Eastern stability. While Brent crude has retreated to $92 from an April peak of $118, it remains significantly elevated compared to pre-war levels. With core inflation metrics rising in Italy and Spain, JPMorgan economist Raphael Brun-Aguerre expects further increases in headline figures when the full euro zone data is published on Tuesday.