German states data are a bit of a mixed bag this month, ranging from +7.0% y/y to +7.9% y/y but put together, it should reaffirm some stabilisation in the annual inflation reading on the national level.

The estimate for the release later is for CPI to come in at +7.2% y/y, in which I reckon the actual reading should be between the range of +7.1% y/y to +7.4% y/y. Either way, the reading remains elevated and while there are proxies suggesting we may be near peak inflation, it is a whole different story to expect inflation

to fall back off towards the 2% level.

That remains a rather farfetched outlook considering the current circumstances.