Annual HICP rises to 3.4% in May from 3.1% previous
- HICP inflation in Germany rise to 3.4% in August.
- EUR/USD stays quiet around 1.1800 after the data.
According to the preliminary estimate published by Destatist on Monday, consumer inflation in Germany, as measured by CPI, decelerated sharply in August and remained flat as compared to the 0.9% rise recorded in the previous month. On a yearly basis, the CPI edged higher to 3.9% from 3.8% in July.
Further details of the publication revealed that the Harmonized Index of Consumer Prices (HICP), the European Central Bank’s preferred gauge of inflation, matched expectations and rose to 3.4% annually from 3.1% reported in the previous month.
Market reaction
The EUR/USD pair had a rather muted reaction to the report and held steady around the 1.1800 mark amid a subdued US dollar price action.
