Germany annual CPI inflation rises to 2.4% in May as expected

Annual CPI inflation in Germany edged higher to 2.4% in May.
EUR/USD recovered to the 1.0850 area after the data.

Eren Sengezer FXStreet

Inflation in Germany, as measured by the change in the Consumer price Index (CPI), rose to 2.4% on a yearly basis in May, Germany's Destatis reported on Wednesday. This reading followed the 2.2% increase recorded in April and came in line with the market expectation. On a monthly basis, the CPI rose 0.1%.

The Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, rose 0.2% on a monthly basis as forecast. The annual HICP increased 2.8% in the same period, up from 2.4% in April and above analysts' estimate of 2.7%.

Market reaction

EUR/USD edged higher with the immediate reaction and was last seen trading flat on the day at 1.0855.

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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