Germany CPI over one year (%)
The chart above certainly looks promising, but the work is not yet done for the ECB. Core annual inflation in Germany was still estimated at 3.0% in April. Although this figure has gradually declined in recent months, it is about the “easy” part of getting inflation back to near 3%. The “difficult” part is that the final stretch brings prices back to the 2% mark.
And that’s where we are right now.
Based on today’s estimates, headline annual inflation is expected to rise slightly to 2.4% in May. But watch out for the trend in the core numbers for the coming months. This will play a key role in determining the ECB’s next steps after next week’s rate cut.
Here is today’s agenda:
- 08:00 GMT – North Rhine-Westphalia
- 08:00 GMT – Hesse
- 08:00 GMT – Bavaria
- 08:00 GMT – Baden-Württemberg
- 08:00 GMT – Saxony
- 12:00 GMT – Preliminary national figures from Germany
Note that releases sometimes do not follow the schedule exactly and may be released a little earlier or later.
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