Latest data released by Destatis - 10 February 2021

  • CPI +0.8% vs +0.8% m/m prelim
  • HICP +1.6% vs +1.6% y/y prelim
  • HICP +1.4% vs +1.4% m/m prelim

Slight delay in the release by the source. The preliminary report can be found here.

No change to the initial estimates as German inflation is seen bouncing back last month. However, as mentioned beforehand, this is largely due to special factors with the VAT cut expiring as well as the introduction of a new CO2 tax this year.

Expect the ECB to continue brushing aside any jump in inflation during 1H 2021.