Regional German inflation data suggests downside risk, Pantheon expects May CPI may drop to 2.6%
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- Pantheon Macroeconomics analyst Claus Vistesen stated that inflation data from German regions suggests a downside risk for the nationwide inflation figures scheduled to be released at 20:00 Beijing time. Germany's largest state, North Rhine-Westphalia, saw its overall inflation rate drop from 2.7% in April to 2.4% in May.
- Data from Bavaria indicates that the reduction in fuel taxes has had a clear effect, with the annual fuel inflation rate decreasing from 26.4% in April to 16.6%, and food prices falling by 1.1% month-on-month. Vistesen expects Germany's May CPI inflation rate to fall from 2.9% to 2.6%, with the risk leaning towards a revision up to 2.7%, while the previous forecast anticipated a decrease of just 0.1 percentage point to 2.8%.
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