Germany CPI year-on-year (%)

The expectation is for headline annual inflation to ease further to 3.5% in Germany this month. That continues to be a welcome development, with monthly inflation also estimated to drop by 0.1%. That being said, a lot of the drop still owes to base effects with high energy prices being faded out.

As a reminder, core annual inflation still came in at 4.3% in October and that is still well above the 2% target that the ECB is looking for. The trend is encouraging but any quick fall towards the target level is not necessarily a given, especially after seeing what the PMI data is suggesting earlier this month.

Here's the agenda for today:

  • 0630 GMT - North Rhine Westphalia
  • 0900 GMT - Hesse
  • 0900 GMT - Bavaria
  • 0900 GMT - Baden Wuerttemberg
  • 1000 GMT - Saxony
  • 1300 GMT - Germany national preliminary figures

Do note that the releases don't exactly follow the schedule at times and may be released a little earlier or later.