We’re seeing some big moves from the German regions
Here’s the latest and what’s been out so far (all y/y)
– Saxony -0.1% vs +0.4% prior
– Brandenburg -0.4% vs +0.3% prior
North Rhine the only one posting positive inflation. Those are pretty big shifts and that’s helped tip the euro lower. Draghi & Co has said that Eurozone CPI could turn negative this year and these numbers will be telling the market they may be right. Given the closeness to the ECB meeting, this data will be further confirmation that the ECB will act.
Collapsing German inflation sends the euro into ECB expectation mode
