Germany: Annual HICP rises to 7.8% in April versus 7.6% expected

Annual HICP inflation in Germany was 7.8% in April, a tad above expected.
FX markets did not react to the latest figures, which didn't deviate to much from expectations.

Joel Frank Independent Analyst

Inflation in Germany according to the Harmonised Index of Consumer Prices (HICP) rose at a YoY pace of 7.8% in April, according to a preliminary data release from the Destatis, the Statistical Office of the EU, on Thursday. That was higher than median economist forecasts for the YoY rate of inflation to have stayed unchanged at 7.6%. The MoM gain in HICP in April was 0.7%, a little above expectations for a 0.4% gain but marking a deceleration after March's 2.5% jump.

Inflation in Germany according to the Consumer Price Index came in at 7.4% in April, above the expected drop to 7.2% from 7.3% in March. MoM, the CPI rose 0.8%, above expectations for a 0.6% rise, but also marking a deceleration after prices rose at a MoM pace of 2.5% in March.

Market Reaction

FX markets were unreactive to the latest national German inflation numbers, which were only slightly higher than expected, but will nonetheless keep the pressure on the ECB to start lifting interest rates in Q3.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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