German Saxony CPI (Sep YY) 3.4% (Prev. 2.9%)

In past episodes the state prints have been a useful directional guide but an imperfect level guide, with the national figure sometimes diverging when the larger western states pull the other way, so the Länder taken together matter more than any single one. A pickup of this size in the year-on-year rate points to base effects and energy components doing much of the work, a pattern that has recurred whenever prior subsidy or fuel price moves roll out of the comparison window; the distinction worth drawing is between a base-effect-driven re-acceleration and one visible in the month-on-month rate and core measures, which historically has separated transitory blips from prints that move the ECB debate. The transmission runs through the front end via expectations for the ECB path, with the bund curve and Euribor strip the natural expression, though a single eastern state on its own has rarely carried that repricing alone. Worth watching is the run of remaining state prints and then the national flash for confirmation, plus whether core behaves the same way as headline. The Deere tag on this item looks like a mis-tag rather than a corporate angle.