Heads up: Germany states’ CPI readings due later today

The chart above certainly looks promising but the job isn’t done yet for the ECB. Core annual inflation in Germany was still seen at 3.0% in April. Although that has gradually trended lower in recent months, it is pretty much the “easy” part in getting inflation back to near 3%. The “hard” part is the final stretch is pulling prices back to the 2% mark.

And that is where we are at now.

Looking at the estimates today, headline annual inflation is estimated to tick a little higher to 2.4% in May. But look out for how the trend will shape up in the core reading for the months ahead. That will play a key role in determining the ECB’s next steps after the rate cut next week.

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.

This article was written by Justin Low at www.forexlive.com.