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There is not much to say about Germany’s flash HICP since the report provides no detail. But the headline says quite a lot this month. Inflation in Germany is steadily accelerating. In prior months core inflation had crept up above the 2% mark which is the ECB’s top allowed rate for all of inflation for the whole of the
Euro area. At 3.3% Germany’s headline rate is way over the ECB’s top allotment and Germany has been
a low inflation country. ECB members have been warning of inflation pressures for some time. Money and credit growth in the
monetary union remain above their respective comfort marks. But the financial turbulence has not gone away. With this report the ECB is again on the hot seat.