- There are still noticeable price pressures, especially in services sector
- Trump's tariffs may cause German economy to contract
- If tariffs come into effect, it could cost Germany 1% in economic output
And therein lies the dilemma for the ECB heading into next year I guess. The good news is that the disinflation process is still progressing, albeit with a few bumps along the way. All else being equal, the argument for further rate cuts should hold heading into 2025.
