Latest data released by Destatis - 30 January 2020
- Prior +0.6%
- CPI +1.8% y/y
- Prior +1.4%
There's good news and bad news in the report release here. The good news is that headline annual inflation is seen rising once again despite a drop in the monthly reading. However, when you strip off energy prices, the core reading actually shows a decline:
That will be the more worrying issue, so don't be fooled by the "rise" in inflation pressures seen in Germany in the later readings. Because with the core reading still remaining subdued, this won't be viewed as good news to policymakers at the ECB.
