Extreme heatwave across Europe raises energy and inflation concerns

An unprecedented heatwave sweeping across Europe is putting pressure on energy infrastructure, disrupting nuclear power generation and reinforcing concerns that climate- driven supply shocks could become a renewed source of inflation.

On June 23, France recorded an average temperature of 29.8 degrees Celsius, the highest since records began in 1947. By June 27, temperatures climbed to 41.5 degrees Celsius in eastern Germany and 40.9 degrees Celsius in the Czech Republic, setting new national records.

The prolonged heat-wave is putting Europe’s power systems under growing strain. Power outages have been reported in parts of France, while several nuclear reactors have also had to
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