German consumer inflation moderated slightly in June with the headline reading easing to 7.6% y/y, down from a peak of 7.9% y/y in May. Estimates are looking for the figure to moderate further in July to 7.4% y/y. Although there are tentative signs of price pressures slowing, the monthly reading is still estimated to show an increase in consumer inflation by 0.6%.

Adding to that, just be wary that for Germany, there might be a spike in the numbers again come September once government subsidies on fuel and rail tickets expire on 31 August. In any case, inflation is expected to stay elevated and even at 7%, it is hardly comforting for the ECB.