Inflation data from Europe has not received much attention in recent months, but the subject could resurface in the foreseeable future, considering the Consumer Price Index in Germany has climbed past 2.0% year-over-year after a brief deflationary scare in the first half of 2016. On Thursday, Germany will release its preliminary Consumer Price Index (CPI) for March, which is an important data point for European Central Bank officials.
Germany's Preliminary March CPI Report (Thursday, March 30, at 8:00 a.m. ET)
- Why it's important
- Germany is the largest economy in the eurozone. Its economic standing influences the market's thinking about the economic standing of surrounding countries. Final February CPI increased 2.2% year-over-year, representing the sharpest growth rate since early 2012.
- The German CPI report will influence expectations for the eurozone CPI report on Friday, March 31.
- The European Central Bank meeting is still nearly a month away, which should allow ample time for German ECB members and domestic policymakers to lobby for tighter monetary policy from the central bank in light of the recent inflationary pick-up.
- Just yesterday, Bundesbank President and ECB member Jens Weidmann reiterated that inflation rates were relatively high and close to the ECB's objective. Mr. Weidmann cautioned against conducting asset purchases for longer than they are needed.
- A closer look
What's in play?
- Regional ETFs
- Vanguard FTSE Europe (VGK)
- iShares Europe (IEV)
- iShares MSCI Eurozone (EZU)
- SPDR Euro STOXX 50 ETF (FEZ)
- Wisdom Tree Europe Hedged Equity ETF (HEDJ)
- iShares MSCI Germany (EWG)
- iShares MSCI Spain Capped (EWP)
- iShares MSCI Italy Capped (EWI)
- Sovereign bonds
- S&P futures