Germany: Regional CPI releases didn’t show any major surprises - TDS

Research Team at TDS, notes that the regional German CPI releases didn’t show any major surprises, suggesting a print for German HICP either in line with expectations (up from –0.3% y/y to –0.1%) or with a small upside risk that we have been tracking.

Key Quotes

“The details were actually firmer than we expected. From the early data, it looks like energy-related components were not as strong as we would have expected given the consistent gains in fuel prices we have seen.

Moreover, there was a bit more firming in core prices, with what looks like recreation rebounding strongly from its April declines while clothing prices remained firmer than usual in May when discounting usually weighs on prices. This all has limited implications for the ECB, but does at least provide some evidence that core prices may not be as sticky to the downside as some have feared.”