Saxony and Spain suggest eurozone inflation weathering euro strength

The day’s early indications for eurozone inflation suggest that the region is, so far at least, shrugging off the impact of the stronger currency.

Spanish inflation rate rose to 2 per cent on a year-on-year basis in August, according to a preliminary reading, up from 1.7 per cent in July and ahead of forecasts. That is bang in line with the European Central Bank’s target, but of course, still way off the 3 per cent pace recorded in February.

Meanwhile, in the earliest of Germany’s regional releases, Saxony has produced annual inflation of 1.9 per cent, up from 1.7 per cent. Other regions are due to report through the day, with the national number due at 1300 London time.

Eurozone-wide inflation data are due tomorrow. Frederik Ducrozet at Pictet tweets: