"In terms of prices, a lot of chicken are dying and chicken is a component of the CPI ... it could have an impact on CPI but it would be short-term," said Julian Cubero, an analyst at BBVA.
"However, there is greater electricity demand [because of air conditioning] which will have an effect on industrial production," Cubero said. In Britain, retail sales shot up nearly 2 percent in the hottest June in nearly 30 years as sun-loving Britons stocked up on everything from barbecues to tanning lotions to new clothes.
But as temperatures remained at record levels this month, Britain's crumbling infrastructure has started to wilt. Train speeds have been cut, leaving sweltering commuters fuming and increasing absenteeism, already up because of the hot weather.
The cost of food staples such as bread and potatoes could also see a heat premium. British bread prices are seen rising by between six and eight pence a loaf after flour millers warned cost rises of around 15 percent -- the largest hike in more than a decade -- would have to be passed on.
France has also seen a spike in grain prices and farmers expect the heat to hit the maize crop, especially in the south of the country.
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