Germany annual CPI inflation declines to 3.2% in November vs. 3.5% expected
- CPI Inflation in Germany continued to soften in November.
- EUR/USD remained around 1.0980 with the immediate reaction.
Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 3.2% on a yearly basis in November from 3.8% in October. This reading came in below the market expectation of 3.5% and was the lowest level since June 2021. On a monthly basis, the CPI dropped 0.4%.
The annual Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, rose 2.3% in the same period, compared to 3.0% in October and the market forecast of 2.7%. Monthly HICP decreased 0.7%.
Market reaction
The EUR/USD held steady around 1.0980, posting modest losses for the day. The reaction was limited as regional German and Spanish data was already pointing to a slowdown larger than expected.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
