Germany: HICP to pick up from 1.5% to 1.8% y/y in August - TDS

German inflation has been quite strong lately, and analysts at TDS are looking for HICP to pick up from 1.5% to 1.8% y/y in August (mkt 1.7%).

Key Quotes

“Package holiday prices have been giving a bigger boost to German inflation than normal lately, so we’re wary of a downside surprise in services inflation. Our 1.8% forecast sees just slightly softer m/m core trends, as opposed to an outright reversal, as well as a bit more support from energy prices and from base effects.”