Latest data released by Destatis - 3 January 2020

  • Prior +1.1%
  • CPI +0.5% vs +0.4% m/m expected
  • Prior -0.8%
  • HICP +0.6% vs +0.5% m/m expected
  • Prior -0.8%
  • HICP +1.5% vs +1.4% y/y expected
  • Prior +1.2%

Slight delay in the release by the source. This fits well with what we saw from the state readings earlier, in that consumer inflation is seen more robust towards the end of 2019.

The good thing about all of this is that the Saxony report earlier also highlighted stronger core inflation and that will be a welcome development for policymakers. That said, we'll have to see if this sort of form is sustainable throughout this year.

For now, it'll provide some room for optimism but markets aren't really focused on that today.