German Inflation Close to Zero

Annual inflation in Europe’s largest economy probably slowed to zero in September, data from some German states suggested on Tuesday, potentially pushing the euro zone figure into negative territory and boosting the case for the ECB to take more action.

Data from five states, including North Rhine-Westphalia (NRW) – Germany’s most populous state and often a bellwether for the national data – showed annual inflation was unchanged on the year after positive readings last month.

Nationwide data is due out at 1200 GMT.

All of the five state readings were well below the European Central Bank’s euro zone target of just below 2 percent.

Economists polled by Reuters before the states’ data was published had predicted annual German inflation harmonised to compare with other European states – the ECB’s preferred measure – would drop to zero from 0.1 percent in August.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza