In July, we saw headline annual inflation stick at 2.0% at the national level while core annual inflation was at 2.7%. The latter continues to be a sticking point for the ECB, with Europe’s largest economy still unable to observe a meaningful drop in price pressures. That is keeping the central bank guarded with no rate cuts expected in Q3 at least.
The good news for the ECB is that the overall economy across the region is holding more resilient. As such, that’s not applying too much pressure on them to cut rates quickly amid stickier price pressures.
The estimate for the German inflation today is for the headline figure to come in a little higher at 2.1%. On a monthly basis though, headline inflation is expected to be flat from July to August. But as always, the core reading is the main one to be mindful of.
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 investinglive.com.