Last of the German regional inflation data
- 0.7% vs 0.4% prior m/m
Here's how it all stacks up (all y/y);
- Saxony 0.3% vs -0.1% prior
- Brandenburg 0.0% vs -0.4% prior
- Hesse 0.1% vs -0.3% prior
- Bavaria 0.3% vs -0.1%
- Baden W 0.1% vs -0.3% prior
Last month the drops into the negative were very sharp. This bounce is nearly as sharp. Looking through the details, energy has played a big part but a lot of negative inflation has come from consumer goods. Using NRW as an example, it was down 1.9% vs -1.8% in Feb y/y. The picture is more or less the same across the other regions. That will be more worrying for the ECB as that highlights those second round effects that they're worried about.
