Here are all the state readings released around the same time:
- Bavaria April CPI +2.9% vs +2.8% y/y prior
- Brandenburg CPI +% vs +2.8% y/y prior (no data yet)
- Saxony CPI +3.0% vs +2.6% y/y prior
- Baden Wuerttemberg CPI +2.6% vs +2.5% y/y prior
- North Rhine Westphalia CPI +2.7% vs +2.7% y/y prior
- Hesse CPI +% vs +2.9% y/y prior (no data yet)
The estimates reaffirm a slight uptick in headline inflation. But at the balance, we might see the national reading later come in around 2.8% to 2.9%. So, that might be just a touch softer than the 3.0% expectation from economists. That being said, even at that region it will still mark the highest headline annual inflation in Germany since January 2024. And if it does touch the 3.0% mark, that will be the highest since December 2023.
Overall, surging energy prices is just continuing to leave its mark on consumer prices. And with it already feeding through to higher input cost inflation, it will only be a matter of time before it hits harder on core prices too. That especially as the Middle East conflict continues to drag on for longer.
