Heads up: Germany states' CPI readings due later today ...Middle East

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Heads up: Germany states CPI readings due later today

German inflation continues to hover just above the 2% mark and that remains a bit of a sticking point for the ECB in general. Headline annual inflation was softer than estimated, coming in right on the money at 2%. However, core annual inflation remains an issue seen at 2.7% - even if moderating slightly.

This time around, headline annual inflation is estimated to ease further to 1.9% in July. However, all eyes will stay on the core figure once again. That will be what policymakers at the ECB will focus on ahead of the September meeting.

    As things stand, markets are expecting the central bank to extend the pause mode with ~93% odds of no change to rates then.

    Looking further out, German inflation will be an interesting spot amid the government's €500 billion spending plans. That won't stoke the inflation flames any time soon but has the potential to fire up productivity and other economic dynamics. So, that's one to look out for.

    All else being equal, the data today shouldn't do much to distract from the ECB's existing stance in the summer.

    Here's the agenda for today:

    0800 GMT - North Rhine Westphalia0800 GMT - Hesse0800 GMT - Bavaria0800 GMT - Baden Wuerttemberg0800 GMT - Saxony1200 GMT - Germany national preliminary figures

    Do note that the releases don't exactly follow the schedule at times and may be released a little earlier or later.

    This article was written by Justin Low at investinglive.com.

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