Yesterday we got the full release of the February Ifo report from Germany. We note that price expectations in services ex. real estate fell almost 10 percentage points. One of our high conviction macro bets for this year is the major divergence between US and Euro inflation and looking at the below chart using employment data from Ifo and compensation plans from the NFIB Survey in the US certainly points in this direction. For a deep dive into the full report and our view on inflation see here.

Wage plans in Germany are simply much less worissome than in the US, and the rates and inflation outlook will likely reflect this in coming quarters.

Chart of the week