NRW CPI
Mar result: +0.1% m/m, +2.6% y/y
Feb result: +0.7% m/m, +2.7% y/y
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Baden-Wuerttemberg CPI
Mar result: +0.1% m/m, +2.6% y/y
Feb result: +0.6% m/m, +2.7% y/y
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Bavaria CPI
Mar result: +0.1% m/m, +2.4% y/y
Feb result: +0.6% m/m, +2.5% y/y
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MNI Median Forecast for Prelim. German Mar CPI: +0.1% m/m, +2.5% y/y
MNI Median Forecast Range: -0.1% to +0.2% m/m; +2.3% to +2.6% y/y
Feb final German CPI result: +0.6% m/m, +2.6 y/y
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FRANKFURT (MktNews) - Like the first two German states to report CPI for March, the month-over-month rise in consumer prices in North-Rhine Westphalia (NRW), Baden-Wuerttemberg (BW) and Bavaria were in line with expectations for the preliminary pan-German consumer price index for March.
The state data point to a moderation of pan-German inflation pressures after two consecutive months of upside surprises.
More moderate data could provide leeway for the European Central Bank (ECB) to cut interest rates ahead, given expectations that M3 money supply growth will falls to or below its 4.5% reference value in the next two months and that the global economic slowdown will dramatically slow eurozone growth.
Bank of France Governor Jean-Claude Trichet said earlier Friday that the ECB is not longer very worried about eurozone inflation.
The ECB is the only major central bank not to have cut interest rates since the U.S. Fed began lowering rates in January.
As in Saxony and Hesse, March CPI data from NRW, BW and Bavaria show that price pressures came mainly came from seasonal food prices as well as clothing and shoes.
The price increases were largely offset by lower costs for petroleum products (motor fuel and heating oil), vacation costs and telephone service costs.