Bank of England MPC member Mann said conditions could be forming for wages and prices to become mutually reinforcing and to continue rising.

Trump said Russia and Ukraine agreed to an immediate "energy ceasefire", prompting hopes that reduced Black Sea disruptions will ease global wheat supply risks. Chicago wheat futures fell for a fourth straight session, sliding as much as 1.3% before trimming losses. Russia and Ukraine together account for more than a quarter of global wheat exports. The USDA unexpectedly raised its U.S. corn production forecast, adding further downward pressure on grain prices. Joe Davis, head of commodity sales at Futures International, said the market reaction reflects expectations of broader de-escalation rather than the ceasefire alone.

Italian Prime Minister Meloni said Italy will introduce tax-relief measures in the 2027 budget aimed at boosting investment in the software industry.