German annual consumer price inflation is estimated to keep in double-digits this month, with another 10.4% reading expected. The EU-harmonised reading is estimated to drop slightly to 11.3% from 11.6% in October but overall, these are still very high figures and will do little to provide comfort to consumers with regards to price pressures.
The good news for the economy is that weather conditions so far have been mild and if that keeps up, the gas/energy crunch during the winter may not be as bad as feared. Even so, the outlook for next year remains rather bleak and challenging.
Inflation may run into some form of a peak in the months ahead but to expect it to come down significantly remains a pipe dream. As such, the ECB will still feel compelled to act aggressively next month – so long as they can still get away with that.
Here’s the agenda for today:
0530 GMT – North Rhine Westphalia
0900 GMT – Brandenburg
0900 GMT – Hesse
0900 GMT – Bavaria
0900 GMT – Baden Wuerttemberg
1000 GMT – Saxony
1300 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.