- Prior +0.8%
- HICP +0.4% vs +0.6% y/y expected
- Prior +0.7%
The estimates here are much softer than anticipated, with the headline reading being the weakest since December 2020. As always is the case, core annual inflation matters the most and we’ll get a sense of that in the final reading the next time. But at the balance, French price pressures continue to show signs of easing and that is quite the contrast to the situation in Germany.
The divergence we’re seeing is what is creating some problems for the ECB to balance out. That especially since Germany is the region’s largest economy, hence needing special care and focus on economic developments there.
