- Inflation in Germany was lower than forecast in May.
- EUR/USD remains in negative territory below 1.0700 after the data.
Inflation in Germany, measured by the change in the Consumer Price Index (CPI), fell to 6.1% year-on-year in May, compared to 7.2% in April. This data was below market expectations of 6.5%. In monthly terms, the CPI fell -0.1% after April’s 0.4% increase, coming in below the 0.2% increase expected.
On the other hand, the Harmonized Index of Consumer Prices (HICP), the preferred indicator of inflation for the European Central Bank (ECB), rose 6.3% in the same period, falling from 7.6% in April and below the analyst estimate of 6.8%. In monthly terms, the IPCA fell -0.2% after the 0.6% increase in April, coming in below the expected 0.2% increase.
Market reaction
The EUR/USD pair has not reacted to the weak German inflation figures. At time of writing, the pair is down 0.5% on the day at 1.0682.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
