Germany annual CPI inflation rises to 2.2% in November vs. 2.3% expected

• Annual inflation in Germany edged slightly higher in November’s flash estimate.
• EUR/USD continues to fluctuate in a tight channel at around 1.0550.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), rose to 2.2% on a yearly basis in November from 2% in September, Destatis’ flash estimate showed on Thursday. This reading came in below the market expectation of 2.3%.

On a monthly basis, the CPI declined 0.2% as anticipated.

The Harmonized Index of Consumer Prices in Germany, the European Central Bank’s preferred gauge of inflation, increased 2.4% on a yearly basis, matching September’s reading and falling short of analysts’ estimate of 2.6%.

Market reaction

EUR/USD showed no immediate reaction to these figures and was last seen losing 0.25% on the day at 1.0540.