Germany: Annual CPI inflation jumps to 10% in September vs. 9.4% expected

Inflation in Germany rose at a stronger pace than expected in September.
EUR/USD trades above 0.9700 after hot German CPI data.

Eren Sengezer FXStreet

Annual inflation in Germany, as measured by the Consumer Price Index (CPI), climbed to 10% in September from 7.9% in August, Germany's Destatis reported on Thursday. This reading came in higher than the market expectation of 9.4.

Meanwhile, the Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, jumped to 10.9% from 8.8%, compared to analysts' estimate of 10%.

On a monthly basis, the CPI and the HICP arrived at 1.9% and 2.2%, respectively, surpassing market forecasts.

Market reaction

The EUR/USD pair continues to trade above 0.9700 after the German inflation data.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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