Germany: Headline HICP inflation likely to print 1.2% y/y in May - TDS

Analysts at TD Securities point out that flash German inflation figures are released for May, and they are looking for headline HICP inflation of 1.2% y/y, a downside surprise vs consensus of 1.4%, and in line with the downside surprises seen in France and Spain earlier this week.

Key Quotes

“Easter effects were a dominant driver of the April data, and we look for a sharp reversal in May. If our forecast is correct, it sets up for a weak 1.1% y/y reading in euro area inflation print next Tuesday.”