Germany March preliminary CPI +1.7% vs +1.7% y/y expected

Latest data released by Destatis - 30 March 2021

• Prior +1.3%
• CPI +0.5% vs +0.5% m/m expected
• Prior +0.7%

• HICP +2.0% vs +2.0% y/y expected
• Prior +1.6%
• HICP +0.5% vs +0.5% m/m expected
• Prior +0.6%

The report is bang on expectations and reaffirms the bump higher as seen with the state readings earlier in the day. Of note, the EU-harmonised reading (HICP) climbs touches +2.0% y/y for the first time since April 2019.

That said, don't expect the ECB to read too much into the jump here as it is also impacted by the VAT changes and also base effect adjustments from last year.