Regional data point to downside risks for German CPI in February
Consumer price inflation in the German state of Saxony fell back sharply in February, as a result of still-falling energy prices but also due to a sharp decline in the price of package holidays, pointing to "severe" downside risks to the nation-wide figures which were set for release later in the day, some economists warned.
The cost of living in Saxony fell to a 0.1% year-on-year pace in February after a rise of 0.4% in the month before.
"These data point to severe downside risks for the advance German print due out later today," Pantheon Macroeconomics said.
A 5.7% fall in the price of package holidays indicated 'seasonals' were also to blame, the think-tank said.