Inflation is back on the menu in Europe today as we will be getting servings from Germany and Spain. The former is a key one to watch as estimates for annual inflation are showing that it is more persistent. Headline annual inflation is expected to come in at 6.3% in June, as compared to the 6.1% reading in May.
That is going to keep the ECB on their toes and the outlook isn't going to be helped by the worsening economic conditions, as evidenced by the PMI data last week here.
A softer reading could weigh on the euro and regional bond yields, since it will spill over to the September outlook for the ECB. There will still be more hurdles to go through in the weeks ahead but this will be one of the few early ones.
Here's the agenda for today:
- 0530 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.
