Germany September preliminary CPI -0.2% vs 0.0% y/y expected

Latest data released by Destatis - 29 September 2020

• Prior 0.0%
• CPI -0.2% vs -0.1% m/m expected
• Prior -0.1%

• HICP -0.4% vs -0.1% y/y expected
• Prior -0.1%
• HICP -0.4% vs -0.1% m/m expected
• Prior -0.2%

Although the downside miss was somewhat predicated by the state readings earlier, the more subdued inflation pressures this month will only serve to keep the ECB guarded against any significant strengthening in the euro.

The bad news in this report is that the EU-harmonised reading for annual inflation has now slumped to its weakest level since the start of 2015.