- CPI +2.6% vs +2.6% y/y prelim
- Prior +2.9%
- HICP +2.7% vs +2.7% y/y prelim
- Prior +2.9%
- Core CPI +2.5% y/y
- Prior +2.3%
No changes to the preliminary estimates there as German headline annual inflation is reaffirmed to show a minor drop in May. That being said, core annual inflation is seen nudging up to 2.5% and that is up from 2.3% in April.
So, that will continue to keep ECB policymakers on their toes in navigating through the risks associated with the Middle East conflict. As things stand, there are growing upside risks to inflation and downside risks to the economy. And that kind of divergence is not the kind of thing that the central bank likes to see.
Circling back to the report above, food price inflation is seen at 0.7% with goods price inflation at 2.2%. Meanwhile, services inflation continues to remain sticky at 3.1%.
