Inflation Picking Up Nicely in Germany

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

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%
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