Saxony October CPI +4.5% vs +5.4% y/y prior

<p>This just reaffirms the much softer annual consumer price readings in Germany on the month. As a whole, this should see the national estimate later come in around 3.7% to 3.9% – which would be lower than the expected reading of 4.0%. But core annual inflation should remain high, even if it is to moderate further to start Q3. For now, at least the trend is working in favour of the ECB and policymakers can take heart in that.</p>

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