Heads up: Germany states’ CPI readings due later today

August 29, 2025
-FXnews

In July, we saw headline annual inflation stick at 2.0% at the national level while core annual inflation was at 2.7%. The latter continues to be a sticking point for the ECB, with Europe’s largest economy still unable to observe a meaningful drop in price pressures. That is keeping the central bank guarded with no rate cuts expected in Q3 at least.

The good news for the ECB is that the overall economy across the region is holding more resilient. As such, that’s not applying too much pressure on them to cut rates quickly amid stickier price pressures.

The estimate for the German inflation today is for the headline figure to come in a little higher at 2.1%. On a monthly basis though, headline inflation is expected to be flat from July to August

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