Germany: Upside risks for headline inflation of 1.7% - TDS

Analysts at TDS point out that Germany’s preliminary November inflation report is released, after last month’s inflation data surprised to the downside across much of Europe on account of weaker-than-expected petrol prices, despite recent gains in crude oil prices.

Key Quotes

“We look for catch-up in November’s inflation figures, and at 1.8% y/y, we see upside risks to consensus for German headline inflation of 1.7%. However, given the unusual behaviour of raw & refined energy prices in recent months, uncertainty remains high around today’s number. Bundesbank President Weidmann speaks at 5pm GMT.”