German consumer inflation moderated slightly in June with the headline reading easing to 7.6% y/y, down from a peak of 7.9% y/y in May. Estimates are looking for the figure to moderate further in July to 7.4% y/y. Although there are tentative signs of price pressures slowing, the monthly reading is still estimated to show an increase in consumer inflation by 0.6%.
Adding to that, just be wary that for Germany, there might be a spike in the numbers again come September once government subsidies on fuel and rail tickets expire on 31 August. In any case, inflation is expected to stay elevated and even at 7%, it is hardly comforting for the ECB.
As mentioned before, there is a difference between identifying an inflation peak and an inflation plateau.
Here's the agenda for today:
0430 GMT - North Rhine Westphalia
0800 GMT - Brandenburg
0800 GMT - Hesse
0800 GMT - Bavaria
0800 GMT - Baden Wuerttemberg
0900 GMT - Saxony
1200 GMT - Germany national preliminary figures
Do note that the releases don't exactly follow the schedule at times and may be released a little earlier or later.
