Eurozone: German inflation to be the highlight – TDS

 A busy day for data in the Eurozone, with the highlight being German inflation ahead of Monday’s Eurozone report, according to analysts at TDS.

Key Quotes

“We look for headline HICP to fall from 1.5% to 1.4% y/y in July (mkt 1.4%), with a risk of a 1.3% reading as the impact of higher holiday prices wanes, which will be balanced out by a smaller drag from energy prices. We see core CPI slipping from 1.5% back down to 1.2% y/y, and likely remaining in a 1.2-1.4% range for the remainder of the year, still some ways off levels that would be consistent with the ECB’s ~1.8% HICP target. Outside of Germany, we also have preliminary CPI data from France, as well as initial Q2 GDP estimates from both France and Spain.”