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The main release today will be the German...>

GERMANY
GERMANY: The main release today will be the German State and National data.
Saxony gets us underway at 0800GMT, accompanied by Spanish provisional December
CPI.
- Consensus is for National German HICP to decline from 1.8%Y/Y to 1.5%Y/Y, with
a 0.5% monthly increase.
- In terms of importance of the various German States' CPIs, the biggest is NRW,
followed by Bavaria, Baden Wuerrtemberg, Saxony, Hesse and Brandenburg is tiny.
It is easier to concentrate upon the monthly (rather than annual) changes in
State CPIs to get an idea of whether the national number will be above/below
consensus.
- Spanish HICP is expected to fall from 1.8%Y/Y to 1.5%Y/Y

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