Saxony November CPI +3.9% vs +4.5% y/y prior

<p>The reading is out much earlier than expected, with the headlines captured by Reuters. The monthly reading shows a 0.3% decline in consumer prices. Put together with the other state readings, we might see German headline annual inflation come in between 2.9% and 3.2%, which is much lower than the 3.5% estimate and the 3.8% reading from October.</p><p>That will be a welcome development for the ECB, although it could mean that we are one step closer to debating rate cuts. Dum dum dum.</p>

This article was written by Justin Low at www.forexlive.com.