European stocks declined on Wednesday as investors fretted about the impact higher prices will have on economies around the world.

Official data showed earlier today that U.K. consumer inflation rose to 2.5 percent in June from 2.1 percent in May. The rate was forecast to climb to 2.2 percent.

The annual growth was largely driven by prices of food, second-hand cars and clothing and footwear.

On a monthly basis, consumer prices gained 0.5 percent, following a 0.6 percent rise in May. The expected rate was 0.2 percent.

Weak Eurozone industrial production data also dented sentiment. Industrial output fell 1 percent on a monthly basis in May, reversing a revised 0.6 percent rise in April, Eurostat said. The pace of decline exceeded the economists’ forecast of -0.2 percent.

Meanwhile, after U.S. inflation data blew past Wall Street’s expectations, investors now wait for guidance from Fed Chairman Jerome Powell, who delivers his semi-annual testimony on monetary policy and the economy today and tomorrow.

The pan European Stoxx 600 dropped 0.3 percent to 459.56 after ending flat with a positive bias on Tuesday.

The German DAX and France’s CAC 40 index both slipped around 0.2 percent, while the U.K.’s FTSE 100 was down half a percent.

Swedish telecoms operator Tele2 jumped 5.4 percent after it reported an 8 percent rise in quarterly core earnings.

Italian fashion company Brunello Cucinelli edged down slightly despite raising 2021 sales forecast for the second time this year.

Travel & leisure stocks were losing ground, with TUI tumbling 4 percent on reports the world’s largest holiday company has cancelled more holidays until August.

easyJet dropped 1.6 percent, Ryanair Holdings shed 0.6 percent and British Airways owner IAG lost 1.2 percent on worries over the Delta variant’s spread in the continent.

German airline Lufthansa fell nearly 1 percent after saying passenger numbers are currently around 40 percent of pre-pandemic levels.

Fashion house Hugo Boss rallied 3.5 percent. The company remains confident that its overall business recovery will continue in the second half of 2021, despite the persisting uncertainties regarding the further development of the pandemic.

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