Latest data released by Destatis - 30 August 2018
- CPI +2.0% vs +2.0% y/y prior
Slightly weaker monthly inflation estimate but the yearly reading holds steady. All in all, the state readings today points towards a possibly weaker-than-expected national reading on the monthly estimate - which is expected. As for the yearly estimate, it looks to either decline a little or hold steady - as per expectations.
But either way, it should not change the inflation picture all too much. As mentioned earlier, the downside skew this month comes from clothing and shoes prices. That is likely a one-off and not going to be a significant drag on inflation in the bigger picture.
