core of the euro, german inflation is key, and if you look at the five your chart here , you can see we have come right back up and german consumers are going to start feeling the pinch and they are notoriously frugal. steven: that german cpi number is close to two, if i have read it properly. matt: that's right. steven: the way i like to wind up my german colleagues is to tell them that if the eurozone is to get a 2% cpi, germany will need something between 3% and 4% , and you should see the reaction you get when you mention three to 4% in germany. that sort of says it is very difficult to get that 2% number into the aggregate, because if you got enough countries that have close to zero, it is arithmetically impossible to get anywhere near to two, so i get the idea that you would have this reflation move and german reflation has gone up,