• Previous +6.1%
• Core CPI +5.4% vs. +5.5% y/y expected
• Previous +5.3%

The good news is that headline year-on-year inflation continued to decline in the month, even assuming a higher benchmark in Germany. However, core inflation remains stubbornly high and this is also particularly evident when we saw the Spanish report earlier here. The Euro may react a bit to the headline figure, but don’t expect the ECB to relax its hawkish stance in any way given what we see in the core (in in bold).