Germany January preliminary CPI +8.7% vs +8.9% y/y expected

• Prior +8.6%
• HICP +9.2% vs +10.0% y/y expected
• Prior +9.6%

The miss on estimates will at least keep markets in a calmer mood for now, especially with the EU-harmonised reading falling to its lowest since August last year. But as mentioned earlier here, the details (when they are published at a later date) are important and this isn't so much so your straightforward inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term report.

As for the changes in calculation, Destatis notes that:

"With the results for January 2023, the consumer price index will be converted from the previous base year 2015 to the base year 2020. The results will be recalculated from January 2020. Results further back on the basis of 2015 are only converted to the basis of 2020.

"On February 22, 2023, the Federal Statistical Office will publish the final results for January 2023 as well as all newly calculated results from January 2020 on the new basis 2020. Extensive additional information on the revision will also be published on this date."