The inflation rate in Germany as measured by the consumer price index is expected to be +0.4% in August 2016. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that the consumer prices are expected to remain unchanged from July. The harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to be up 0.3% in August 2016 year on year. Compared with July 2016, it is expected to decline by 0.1%.

Wednesday brought German job figures and Eurozone CPI data. The number of people unemployed in Germany fell more-than-expected last month, official data showed on Wednesday. In a report, Destatis said that German unemployment change fell to a seasonally adjusted -7K, from -8K in the preceding month whose figure was revised down from -7K. Analysts had expected German unemployment change to fall -5K last month.

Euro area annual inflation is expected to be 0.2% in August 2016, stable compared with July 2016, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in August (1.3%, compared with 1.4% in July), followed by services (1.1%, compared with 1.2% in July), non-energy industrial goods (0.3%, compared with 0.4% in July) and energy (-5.7%, compared with -6.7% in July).

Thursday was marked by Spanish Manufacturing PMI data. Growth in the Spanish manufacturing sector remained muted in August. The health of the sector improved slightly as the rate of expansion in production eased. However, new orders returned to growth following a fall in July. With improvements in demand only modest, firms reduced the pace at which they took on extra staff. Meanwhile, inflationary pressures remained muted. The PMI was unchanged at 51.0 in August, signalling a marginal improvement in business conditions for Spanish manufacturers, and one that was the same strength as July’s 31-month low.

From Eurozone, on Friday, only, Spanish Unemployment Change data was released. Spanish unemployment rose for the first time in five months in August, coinciding with the tail-end of a bumper tourism season, though the underlying pattern suggested a long but gradual recovery in the labor market remains on track. A record summer for tourist arrivals has helped the economy shrug off a prolonged period of political uncertainty and, seasonally-adjusted, the number of people registered as jobless fell by 24,462 people in August, Labour Ministry data showed on Friday. But compared with July the jobless number rose by 0.39 percent, or 14,435 people, leaving 3.7 million out of work.

This week markets will be looking at:

German Industrial Production (Wednesday 8:00)

Minimum Bid Rate/ECB Press Conference (Thursday 14:30)