German HICP to pick up to 1.6% y/y in January – TD Securities

Analysts at TD Securities expect the German Preliminary Consumer Price Index (CPI) to accelerate on an annualized basis in January.

Key Quotes:

“We look for German HICP to pick up to 1.6% y/y in January (mkt 1.7%).

The contribution of energy prices should increase on base effects, while we look for core CPI to slide lower, also on base effects, after an outsized m/m gain in January 2019.

Core inflation will likely continue to be choppy this year on the back of some extraordinarily large m/m swings through spring/summer 2019 distorting the y/y measures.”