The other readings released around the same time (updated on the go):

• North Rhine Westphalia CPI +1.8% vs +2.0% y/y prior
• Saxony CPI +1.9% vs +2.1% y/y prior
• Baden-Wuerttemberg CPI +1.8% vs +2.1% y/y prior

The early indications point to headline annual inflation softening by a bit more than the January readings. At the balance, it points to the national reading later likely to come in around 1.9% (compared to the 2.0% estimate pointed out here).

But as mentioned in the preview and linked post, the main thing to watch for German inflation is still core prices. Core annual inflation was seen stubborn around 2.5% in January, continuing to keep above the desired 2% threshold. The ECB will be watching that spot carefully, as price pressures in Europe’s largest economy has been the main hindrance for policymakers in trying to cut interest rates further.

Barring any major surprises though, the numbers today will continue to keep the ECB on the sidelines for the foreseeable future.