The good news for Germany was that headline annual inflation ticked lower in May, dropping to 2.6% from 2.9% in April. However, core annual inflation is still the main issue with that moving higher last month. The figure moved up to 2.5% in May from 2.3% in April. And that will once again be the focus as we look to the inflation numbers in the day ahead.
But before we get to the national estimate, there will be the state readings to work through first. As always, that will typically set the tone of what to expect from the national estimate later on in the day.
That being said, the state readings will all just involve headline estimates only. As for the core estimate, that will only come later in the day with the overall report.
The ECB is being rather guarded in this whole thing but it will take a significant upside surprise to really reignite the conversation for a July move. Otherwise, the ECB will wait until after the summer before acting next in all likelihood.
Here’s the agenda for today:
- 0800 GMT – North Rhine Westphalia
- 0800 GMT – Hesse
- 0800 GMT – Bavaria
- 0800 GMT – Baden Wuerttemberg
- 0800 GMT – Saxony
- 1200 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 investinglive.com.
