Regional consumer price readings published on Friday indicate that inflation moderated in several German states during February, a development that could translate into a lower national inflation rate when official figures are released later in the day.
North Rhine-Westphalia, the country's largest state by population, recorded an annual inflation rate of 1.8% in February, slipping below the 2% threshold. In Bavaria, inflation eased to 1.9% in February from 2.1% in January. Lower Saxony showed a similar pattern, with its rate declining to 1.9% from 2.1% the previous month.
Official national consumer price statistics are scheduled for publication at 2 p.m. (1300 GMT). Economists surveyed in advance of the release are forecasting that the harmonised national inflation rate will remain unchanged at 2.1% year-on-year compared with January.
The regional softening comes against the backdrop of euro zone inflation having fallen to a 16-month low of 1.7% in January, a level below the central bank's 2% target. That wider slowdown has prompted some policymakers to express concern that price growth could decelerate too far.
These state-level movements - with multiple large states showing declines from January - will be reflected in the national tally due this afternoon. The degree to which the national figure diverges from economists' expectations will determine whether the recent regional easing is a temporary trend or indicative of a broader slowdown in price growth.
For now, the available regional figures present a clear picture of month-on-month moderation in headline inflation across key parts of the country, while the final national harmonised rate awaits the scheduled release.