FXStreet reports that analysts at TD Securities (TDS) suggest that Germany’s inflation is to turn positive this month.

“We look for German inflation to pick up to 0.6% y/y in January, returning to positive territory for the first time since before the VAT cut in July.”

“There is a huge amount of uncertainty around the number though, as it's always impossible to tell how much of a change in VAT rates ends up getting passed through to consumers.”