The economic data from the Eurozone has been getting weaker as the year progressed and inflation has weakened. Lat month, the main CPI (consumer price index) number slipped below 2.0%, which is the minimum target for the European Central Bank, coming at 1.9%. Core CPI declined to 0.9%, which is below the minimum target from the ECB at 1.0%.

Today, we are getting the CPI inflation figures from Germany and Spain. As my colleague Arslan posted here earlier, the Spanish year-on-year CPI number came at 1.2%. It cooled off last moth, declining from 2.3% to 1.7% and today it dives again, this time to 1.2%.

After that, the regional inflation numbers from Germany started coming out and they were disappointing again. The monthly CPI number from Baden-Wuerttemberg fell flat at 0.0% against 0.3% previously, while the YoY number declined to 2.0% from 2.7% previously.

CPI for North Rhine Westphalia also came at 0.0% for December while the annualized number declined to 1.8% from 2.4%. CPI MoM from Bavaria came at 0.0% as well, down from 0.3% previously. The annualized number declined to 2.2% from 2.7%.

CPI MoM from Hesse came at -0.1% and the YoY number declined to 1.4%, down from 2.1%. The monthly number from Saxony was a bit of a surprise as it jumped by 0.4% from -0.1% previously. Although, the YoY inflation number still slipped lower to 1.9% against 2.1% previously.

So, weak inflation numbers all around, which makes things worse for the European Central Bank. The ECB is sounding increasingly dovish and they will turn even more dovish if the economic data from the Eurozone continues to come like this, so Euro traders beware.