Headline annual inflation is on the declining trend, as evident by the chart above. However, core prices are the key thing to be mindful of at the moment. And in February, that was seen at 3.4% – unchanged from January. With core annual inflation still keeping above 3%, the ECB can’t rest on their laurels just yet.
But in their defense, the trend is your friend. And for now, there’s still some evidence of the disinflation process continuing.
The estimate for German inflation today is for a 2.2% reading. If matched, it will provide the ECB more comfort as they look to tee up a rate cut in June. But as mentioned above, core annual inflation is still the main thing to pay attention to in the bigger picture.
Here’s the agenda for today:
0800 GMT – North Rhine Westphalia0800 GMT – Hesse0800 GMT – Bavaria0800 GMT – Baden Wuerttemberg0800 GMT – Saxony1200 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.
This article was written by Justin Low at www.forexlive.com.