Prior +2.3%HICP +2.8% vs +2.8% y/y expectedPrior +2.4%Core CPI Y/Y +2.4% vs +2.5% prior
The inflation rate in Germany is expected to be +2.8% in July 2026. The inflation rate excluding food and energy is expected to stand at +2.4% in July 2026. Energy prices are expected to be up 8.3% on the same month of the previous year. The rise in energy prices therefore accelerated again significantly in July.
The downtick in core inflation is welcome news for the ECB, and if the Eurozone CPI shows the same trajectory, the chances for a September hike could drop. The focus will also be on the Middle East as a de-escalation would reduce significantly the urgency for further tightening.
This article was written by Giuseppe Dellamotta at investinglive.com.