Germany: Annual HICP drops to -0.5% (preliminary) in October vs. -0.4% expected

HICP in Germany fell to -0.5% on a yearly basis in October.
EUR/USD remains depressed near 1.1700 after the data.

Eren Sengezer FXStreet

Inflation in Germany, as measured by the Consumer Price Index (CPI), was 0.1% (preliminary) in October, the data published by Destatis showed on Thursday. This reading followed September's print of -0.2% and came in higher than the market expectation of 0%. On a yearly basis, the CPI stayed unchanged at -0.2%.

Further details of the publication revealed that the Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, declined to -0.5% in October from -0.4% on a yearly basis. This print missed analysts' estimate of -0.4%.

Market reaction

The EUR/USD pair showed no immediate reaction to this data as investors wait for the European Central Bank President Christine Lagarde to deliver her remarks on the policy outlook. As of writing, the pair was down 0.37% on the day at 1.1700.

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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