German inflation continues to be a bit of a sticking point for the ECB since last year. While headline annual inflation continues to keep closer to 2%, it is still taking some time for core prices to converge towards the target. In February, the latter was seen at 2.7%. That still showed some easing from January but it’s still not quite there yet.
The estimate today is for headline annual inflation to ease a touch to 2.2%, down from 2.3% in February. But as per before, it’s all about the core reading when it comes to taking stock of German price pressures. So, that will be the main focus point still.
The government’s €500 billion spending plans are not likely to impact price pressures all too immediately. So, that shouldn’t show up in the short-term at least. But it does have the potential to stoke the flames of inflation in the medium-term, depending on productivity and other economic dynamics. And that’s something the ECB has to be wary about as well.
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.
