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MNI: GERMAN DATA: Final HICP (Mar 2019) Preview -....>

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MNI: GERMAN DATA: Final HICP (Mar 2019) Preview - 07:00 BST
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- Previous (Feb): 0.6% m/m, 1.5% y/y; Flash (Mar): 0.5% m/m, 1.4% y/y
- Markets expect final inflation to register in line with flash...
- ... which showed annual HICP moderating by 0.3pp to 1.4% y/y - its weakest
reading since Apr 2018
- Some of the downward pressure can be attributed to recent methodological
changes and late Easter
- A series of recent collective bargaining agreements has fed through into
higher wage costs...
- ... but weak economic backdrop is constraining the ability of firms to raise
consumer prices
- As well as margin squeezing, structural trends appear to be weakening
transmission of wage growth to inflation

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