German annual CPI inflation declines to 6.1% in August vs. 6% expected

• CPI Inflation in Germany softened slightly in August.
• EUR/USD clings to small daily gains while trading below 1.0900. 

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 6.1% on a yearly basis in August from 6.2% in July. This reading came in higher than the market expectation of 6%. On a monthly basis, the CPI increased 0.3%, matching analysts’ estimate and July’s increase.

The annual Harmonised Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred gauge of inflation, rose 6.4% in the same period, compared to 6.5% in July and the market forecast of 6.2%. Monthly HICP increased 0.4%.

Market reaction

The EUR/USD pair showed no immediate reaction to these figures and was last seen trading marginally higher on the day at 1.0885.