Inflation Picking Up Nicely in Germany

Inflation is posting another decent increase in June in Germany

Written by: Skerdian Meta • Monday, June 29, 2020 • 1 min read

• Last updated: Monday, June 29, 2020

Inflation was weak already across the globe and in particular in Europe, before the coronavirus. But, as the virus spread across the globe and the lock-downs came, the sentiment turned negative and risk assets such as crude Oil tumbled. That lead to a steep decline in inflation during March and April, but in May we saw a decent increase and today’s report from Germany is showing another increase in June as the report below shows:

Germany June CPI Inflation Report

June preliminary CPI YoY +0.9% vs +0.6% expected
May preliminary CPI YoY+0.6%
CPI MoM +0.6% vs +0.3% m/m expected
May CPI MoM -0.1%

HICP YoY +0.8% vs +0.6% expected
May HICP YoY +0.5%
HICP MoM +0.7% vs +0.4% expected
May HICP MoM 0.0%

The state readings earlier provided a slight upside bias going into the release and the figures here pretty much confirms it. Price pressures improved modestly in the month of June and that is a positive takeaway at least, after having seen the headline reading slump to its lowest level since September 2016 back in May.

Brandenburg June CPI +1.0% vs +0.9% prior
May YoY CPI +0.9

The latest readings here reaffirm that there is a modest bounce in price pressures seen in June, and that should set up a slightly more positive bias ahead of the German national reading later today at 1200 GMT. Some other releases from Hesse and Bavaria as well:

Hesse CPI +0.8% y/y
Prior +0.3%
Bavaria CPI +0.8% y/y
Prior +0.6%

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account
Read our latest reviews on: Avatrade, Exness, HFM and XM

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.