With regional CPIs cliff-diving in December relative to November, it is not entirely surprising that broad Consumer Price Inflation for Germany as a whole just printed at a mere +0.2% YoY (missing expectations of +0.3%) - the lowest since October 2009 and was unchanged MoM. The initial reaction in DAX was a modest rise as if the EU's strongest core economy is nearing outright deflation, markets will price-in even more likelihood to the ECB's sovereign QE any minute now. Of course, in the eyes of the Fed this is all transitory and energy-driven but stocks hope that Draghi ignores that.
Regional CPIs for Germnay dropped a big hint...
[4]
as broad CPI drops to its lowest rate since oct 2009...
[5]
Chart: Bloomb erg
