Germany November preliminary CPI +2.2% vs +2.3% y/y expected

• Prior +2.0%
• HICP +2.4% vs +2.6% y/y expected
• Prior +2.4%

Slight delay in the release by the source. Headline annual inflation crept a little higher but less than estimated, as per the state readings earlier. That owes more to base effects, with monthly inflation seen down 0.2%. The EU-harmonised reading was the same as October though for the year-on-year estimate. I’ll update the details for the core reading in a bit as the Destatis website is facing technical issues at the moment. Update: Core annual inflation is estimated to be at 3.0%, up from 2.9% in October. Yikes. Not good news for the ECB. Stagflation incoming for Germany?

This article was written by Justin Low at www.forexlive.com.