🇪🇺Cable FX Macro Weekly Note: EU April Preliminary CPI

**As seen in Risk In The Week report 04/28/23, subscribe at cablefxm.co.uk/reports

April preliminary inflation figures will be released this week. Last month, we saw the core rate stay steady at a record high of 5.7% Y/y, in line with estimates. The headline figure eased to 6.9% Y/y from the prior 8.5%, this was below the median survey of 7.1%. On a monthly basis, energy prices declined by 2.2%, food prices increased by 1.3%, core CPI came in at 1.3%. On Friday, we saw April consumer prices from France rising above estimates and faster than the prior, Spain was below the consensus but ticked higher from March, Germany came in lower than both prior and expectations. The desk at ING said that the inflation picture is starting to become less concerning as energy futures remain stable while producer prices come off their peaks. They added that food prices are easing, and supply chain issues have moderated. Deutsche Bank said that the recent inflation figures in Germany suggest inflation is past its peak of October and November, they noted that the German subsidized nationwide transport ticket is likely to dampen core and headline CPIs for May to 5.3% and 6.5%, respectively. Deutsche Bank said that inflation risks remain to the upside, however, they see prices easing to 4.25% by Q4 2023.