Heads up: Germany states' CPI readings due later today

German states will publish April CPI readings today, with headline annual inflation expected to rise to about 3.0% — the highest since December 2023 — driven mainly by surging energy prices amid the Middle East conflict and Strait of Hormuz disruptions. The piece warns that energy-driven cost-push inflation is squeezing households and businesses and could eventually feed into core inflation (core was 2.5% in March) if higher input costs persist. Multiple regional releases are scheduled at 0800 GMT (North Rhine‑Westphalia, Hesse, Bavaria, Baden‑Wuerttemberg, Saxony) with national preliminary figures due at 1200 GMT. Market participants should watch these prints for near-term euro/dollar reactions and for signs that elevated energy costs are becoming embedded in broader price trends.