LONDON — The introduction of euro notes and coins increased inflation in all but two of the dozen nations sharing the euro, the Bank of England said.

People in most countries have a "strong perception" prices rose after Jan. 1, when euro notes and coins began circulating, the U.K. central bank said in its semi-annual study on technical issues related to the European Union's currency. Official statistics suggest the impact was "small."

"There is convincing anecdotal evidence of increases in many individual prices, particularly of small items, and in small shops, hotels, restaurants and cafes," the report said. "But the overall impact on prices appears to have been very small, to judge by official indices."

The comments cast doubt on the economic case for Britain's adopting the currency, something Prime Minister Tony Blair says he supports. They may undermine support for the euro in Europe's second-biggest economy as the government weighs whether to recommend putting the issue to a referendum.