Hol lot more euro woe...

Surge in value hits Brits abroad

A EURO surge will hammer holidaymakers, push up inflation and could increase the Brexit divorce bill, say experts.

Sterling hit an-eight year low against the single currency earlier this week.

It was yesterday trading at around €1.083 ahead of speeches by central bankers in Wyoming, in the US.

The pound’s weakness since last June’s Brexit vote has already driven up the cost of imports, leading to higher inflation and hitting Brits holidaying abroad.

The euro’s latest rise – fuelled by an improving eurozone economy – threatens to bring more pain for households here.

James Hickman, from currency firm FairFX, said: “It’s good for UK firms exporting to Europe, but importers are really feeling the pinch and they’re having to pass that on.

“I think the rate of inflation will begin to rise again.”

Meanwhile, research by Reuters suggested the euro’s strength could add £9.4billion to the final bill the UK may have to pay the EU for leaving, although the issue is hotly contested. Many Brits have already noticed the impact when holidaying in Europe this summer.

Research by Post Office Money shows the cost of five typical holiday purchases – from a portion of chips to a bottle of beer – has gone up more than 7% year on year in the Costa del Sol, when converted back into sterling.

The same items have risen 8% in Crete, 12% in Palma Nova, Majorca, and 17% in Sorrento, Italy. Andrew Brown, from Post Office Money said: “Holidaymakers will notice it’s got more expensive, but that’s partly offset by prices locally coming down in many cases.”

But travellers going to Turkey – which is outside the eurozone – are quids in.

The same five items in Marmaris cost 36% less, year on year, because the lira has weakened against the pound, said Post Office Money.