German March CPI -0.1% m/m, +0.5 y/y

German March CPI has come in at -0.1% m/m and +0.5% y/y versus +0.6% and +1.0% respectively in February, weaker than median forecasts of +0.2% and +0.8%. Can’t say its a real surprise, the state data having earlier tipped the wink.

Price pressures continue to abate. The annual German inflation rate is now the lowest since July 1999. Now just remains for the ECB to cut rates and move to quatitative ease.