Germany October preliminary CPI +4.5% vs +4.4% y/y expected

Latest data released by Destatis - 28 October 2021

• Prior +4.1%
• HICP +4.6% vs +4.5% y/y expected
• Prior +4.1%

This fits with what was outlined by the state readings earlier as mentioned here, as German annual inflation continues to soar to start Q4.

Base effects have some role to do with this amid the VAT reduction in the second half of last year but the trend across the region is undeniable as rising cost pressures and import/producer prices are also feeding through to consumer inflation now.

All of that of course stemming from supply and capacity constraints, which are certainly going to persist going into early next year at the very least.