Germany annual CPI inflation rises 2% in October vs. 1.8% expected

Inflation in Germany rose at a stronger pace than expected in October.
EUR/USD stays above 1.0800 following the German CPI data.

Eren Sengezer FXStreet

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), rose to 2% on a yearly basis in October from 1.6% in September, Destatis' flash estimate showed on Wednesday. This reading came in above the market expectation of 1.8%.

On a monthly basis, the CPI rose 0.4% after staying unchanged in September.

The Harmonized Index of Consumer Prices in Germany, the European Central Bank's preferred gauge of inflation, increased 2.4% on a yearly basis, up sharply from the 1.8% increase recorded in September.

Market reaction

EUR/USD recovered slightly from session lows after these data and was last seen trading flat on the day near 1.0820.

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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