Free Trial

Re-Basing & Energy Subsidies Add Uncertainty to German CPI Print (2/3)

GERMAN DATA
MNI (London)

Uncertainty 1 - New base year: As of January 2023, Destatis will use new weights to calculate CPI. It's reweighted based on 2022 spending patterns, likely to see energy more heavily weighted. Initial evidence from Spain’s reweighting: food, clothing less heavily weighted.

  • A more heavily weighted energy component expected due to the 2020-rebasing will ensure that whichever way the effect swings, the repercussions will be greater for the headline inflation print.
  • If Germany follows Spain in reducing weights for food and clothing, the former will see headline CPI soften whilst the effect of clothing will be based on whether retailers attempted to salvage profit margins or move merchandise in sales.

To read the full story

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.