German States Show Soft Inflation in December
The inflation landscape in Germany is shifting, with states revealing softer headline inflation readings in December. Here's a breakdown of the latest data:
- North Rhine Westphalia: CPI rose by 1.8%, a slight decrease from the previous year's 2.3%.
- Saxony: CPI increased by 1.9%, down from the prior year's 2.2%.
- Bavaria: CPI saw a +% increase, compared to the previous year's 2.2%.
- Baden Wuerttemberg: CPI also increased by +%, down from the prior year's 2.3%.
This data comes on the heels of earlier estimates pointing to a cooling in headline annual inflation. The expectation is for a 2.1% reading, a decrease from November's 2.3%. However, the core annual inflation estimate, which is considered more crucial, stood at 2.7% in November, only slightly lower than October's 2.8%. This figure remains above the 2% threshold, indicating persistent inflationary pressures.
The national reading is projected to be around 1.9% to 2.0%, a significant drop from November's 2.3%. Yet, the core annual inflation reading is the key indicator to monitor closely.
