As the year winds down, the German economy is one of the main sticking points for the ECB in having pushed their monetary policy stance to being on hold for now. Inflation pressures in Europe's largest economy has yet to show meaningful signs of easing further and that's been a tricky part for policymakers to navigate.
Core annual inflation even moved higher in September to 2.8%, up from 2.5% back in August. And that's really making it tough for the ECB to want to push for any further rate cuts as we look to the turn of the year.
The October readings today are expected to show some slight easing in headline inflation, with the annual estimate expected to fall back to 2.2% - down from the 2.4% reading in September. But again, all eyes will be on that core reading. As long as that continues to stay stubborn and well above the 2% mark, the ECB will continue to have to stay on the sidelines in favour of a more cautious approach in policy setting.
Here's the agenda for today:
- 0900 GMT - North Rhine Westphalia
- 0900 GMT - Hesse
- 0900 GMT - Bavaria
- 0900 GMT - Baden Wuerttemberg
- 0900 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.
