Fabio Fois at Barclays has not changed...>

DATA REACT: Fabio Fois at Barclays has not changed his forecast for German CPI

due out at 1300GMT, writing that the State  data were in line with in line with

Barclays' expectation of HICP at 0.5%M/M, 1.3%Y/Y, although there is a small

downside risk to the forecast.

- By contrast, preliminary Spanish inflation surprised to the upside. "Headline

HICP inflation increased to 1.2% from 0.7%, above our and consensus forecast of

0.9%, as electricity prices were boosted by a favourable base effect."

- Regarding tomorrow's Eurozone HICP, Fois writes "We continue to expect "flash"

euro area headline inflation will ease to 1.2% from 1.3% previously, and we

expect core inflation to remain unchanged at 1.0%. We also continue to think

that risks surrounding our core inflation forecast remain tilted to the

downside"