Germany annual CPI inflation softens to 1.6% in September

• Inflation in Germany continued to soften in September.
• EUR/USD trades in positive territory near 1.1200 after the German CPI data.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 1.6% on a yearly basis in September from 1.9% in August, Destatis reported. On a monthly basis, the CPI was unchanged following the 0.1% decline recorded in August.

The Harmonized Index of Consumer Prices in Germany, the European Central Bank’s preferred gauge of inflation, rose 1.8% on a yearly basis, down from 2% in August and below the market expectation of 1.9%.

Market reaction

These figures failed to trigger a noticeable reaction in EUR/USD. At the time of press, the pair was trading near 1.1200, where it was up about 0.3% on the day.