Saxony August CPI +6.8% vs +6.7% y/y prior

<p>It truly is a mixed bag for the inflation readings for German states today. But considering the latest one from Saxony here, at the balance it suggests a slightly stronger than expected annual headline inflation reading at the national level. The estimate for the German CPI later is 6.0% y/y, down from 6.2% y/y previously. But I reckon we should get something in the range of 6.2% to 6.4% y/y instead.</p><p>As for ECB pricing, it is now showing ~54% odds of a 25 bps rate hike – which is pretty much where we started the day off <a href="https://www.forexlive.com/news/inflation-data-is-back-on-the-menu-in-europe-today-20230830/" target="_blank" rel="follow">here</a>.</p>

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