German State Inflation Slows Across All 4 June Readings as National CPI Seen at 2.4%
Updated
Updated · investinglive.com · Jun 30
German State Inflation Slows Across All 4 June Readings as National CPI Seen at 2.4%
2 articles · Updated · investinglive.com · Jun 30
Summary
All four German state readings released Tuesday showed slower annual inflation in June, with Bavaria and Saxony at 2.5% and North Rhine-Westphalia and Baden-Wuerttemberg at 2.1%.
Monthly data also pointed softer overall: Bavaria fell 0.2%, North Rhine-Westphalia 0.4% and Baden-Wuerttemberg 0.2%, while only Saxony posted a 0.2% rise.
Those figures, alongside earlier French data, suggest Germany’s national CPI will likely ease to about 2.4% from 2.6% in May, avoiding the upside surprise that could have pressured the ECB into a July move.
Rate expectations edged lower after the data, with traders pricing about 28 basis points of ECB hikes by year-end versus roughly 30 basis points before the release.