EU electricity prices held steady as gas surged but drought increases risk, Daniel Kral notes

EU electricity prices held steady as gas surged but drought increases risk, Daniel Kral notes
EU power prices steady, drought risks rise

Daniel Kral notes that, unlike in 2022, EU wholesale electricity prices have remained stable this year despite a rise in gas prices, which has helped keep headline inflation much lower.

However, he points out that the situation has recently shifted due to droughts impacting nuclear and hydro generation, echoing the challenges faced in 2022.

Kral has previously highlighted Finland's GDP revision while Germany has faced stagnant economic growth since 2019. He also noted a modest increase in German industry activity for May, led by cars and consumer goods, but cautioned about past false starts. The recent developments in energy markets add to his ongoing coverage of European economic conditions.

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