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Saxony June CPI +6.8% vs +6.5% y/y prior

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This just reaffirms that we should see a slightly higher headline annual inflation reading for Germany later, with the reading set to be somewhere around 6.3% to 6.4% – compared to the 6.1% reading in May. That said, do keep in mind that the “higher” estimate this time around is largely to do with base effects. That is because of the €9 rail pass subsidy introduced by the government in June to August last year, as a measure to combat high price pressures at the time.

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