The state readings released around the same time:

• Bavaria August CPI +2.9% vs +2.8% y/y prior
• Saxony August CPI +2.9% vs +2.7% y/y prior
• North Rhine Westphalia August CPI +2.9% vs +2.7% y/y prior
• Baden Wuerttemberg August CPI +2.6% vs +2.5% y/y prior

And even the monthly estimates are showing stronger prints after the big jump in July:

• Bavaria August CPI +0.2% m/m
• Saxony August CPI +0.2% m/m
• North Rhine Westphalia August CPI +0.2% m/m
• Baden Wuerttemberg August CPI +0.1% m/m

That in itself continues to reaffirm that price pressures are growing more broadly, not just driven by base effects for the most part.

Based on the estimates above, we should see the overall German national print later come in around 2.9% or 3.0% (rounded up) – so that sort of fits with estimates of 2.95% (3.0%).

Again, this doesn’t change anything for the ECB going into September but it at least reinforces the narrative that a positioning move is needed by the central bank. They are poised to raise key interest rates again so as to bring monetary policy to a mildly restrictive stance.

That in order to prepare themselves for a battle against inflation and potential second round effects that could materialise late this year or early next year.