Today is the day for the German inflation numbers to be released. Germany is a federated country so the CPI (consumer price index) figures get released for each region/state before the main number for the whole country which will be released later on the day.

So far, we have had the inflation numbers from Saxony, Bavaria, Hesse and Brandenburg. Below are the numbers for these regions:

Actual MoM Previous MoM Actual YoY Previous YoY

Saxony – -0.1% 0.2% 2.1% 2.5%

Brandenburg – -0.1% 0.1% 1.8% 2.3%

Hesse – 0.3% 0.1% 2.1% 2.2%

Bavaria – 0.3% 0.2% 2.7% 2.8%

North Rhine 0.3% 0.1% 2.4% 2.4%

As you can see, all numbers are mixed. The monthly inflation for November is higher than the previous month in two out of three regions, but the yearly numbers are almost lower for all of them.

So, it leaves a bit of a puzzle for the national number later on. Lower inflation in Germany means that the European Central Bank will have one more reason to turn dovish after some soft economic data that we have seen from the Eurozone this year.