We've had the regionals and now we wait on the full German data at 12.00 GMT
Capital Economics via Livesquawk have this to say:
Data from the German states suggest that HICP (harmonised) inflation was
flat at close to zero in July and confirm that underlying price
pressures are very subdued. A weighted average of data from five German
states, accounting for just over half of the national total, points to
unchanged national CPI inflation of 0.3%. This suggests that the HICP
measure probably held at 0.1%, in line with the consensus forecast
(official data will be released at 13.00 BST).
The breakdown in
the regional data suggests that energy inflation edged further into
negative territory as expected. This, together with a small fall in food
inflation, appears to have driven the fall in the headline rate. Falls
in some of the core components, such as clothing, appear to have been
offset by higher inflation in the holidays component. But note that the
core rate was already low, at 0.9% in June, and probably stayed there.
Forecasts are :
CPI mm +0.2% vs -0.1% prev yy +0.3% as prev
HICP mm +0.3% vs -0.2% prev yy +0.1% as prev
EURUSD currently slipping again at 1.0954