Germany annual CPI inflation softens to 2.3% in January vs. 2.6% expected
- Annual inflation in Germany softened unexpectedly in January.
- EUR/USD continues to trade in a tight range at around 1.0400.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), softened to 2.3% on a yearly basis in January from 2.6% in December, Destatis' flash estimate showed on Friday. This reading came in above the market expectation of 2.6%.
On a monthly basis, the CPI declined by 0.2% after rising 0.1% in December.
The Harmonized Index of Consumer Prices in Germany, the European Central Bank's preferred gauge of inflation, increased 2.8% on a yearly basis, matching December's increase and the market consensus.
Market reaction
EUR/USD showed no immediate reaction to this report and was last seen trading marginally lower on the day at 1.0385.
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.

















