Germany April preliminary CPI (HICP) +2.2% vs +2.1% y/y expected

Prior +2.3% HICP m/m +0.5% vs +0.

4% expected Prior +0.4% Core CPI Y/Y 2.9% vs 2.



6% prior A touch above expectations but nothing that will change the ECB's plan of cutting rates in June. The Core reading saw a notable jump though. We will see how things evolve in the next months but the trade negotiations remain the market's focus.

On a forward looking basis, if we get a resolution on the trade war front, we could see a strong and sudden pickup in demand which would push economic activity and prices up. That's something to watch out for as it could trigger a more hawkish repricing in interest rate expectations..