- German inflation figures come out 1.8% Y/Y
- Print was below expected but inline with prior
- Euro edging higher on the day
The latest inflation data from the most powerful country in the EU has failed to show a rise as expected, with the German HICP coming in inline with the prior reading of 1.8% Y/Y. In M/M terms the print was flat at 0.0% compared to consensus forecasts for a rise of 0.1%.
After rising above 2.0% earlier this year there has been a pullback in inflation seen in the Eurozone. Source: XTB Macrobond
Earlier today, we saw a rise in Spanish inflation which now also stands at +1.8% Y/Y. The reading was an increase of 0.2% from the prior print and together with the German reading could be seen to suggest that there will be a beat in tomorrow’s Eurozone wide figure which is expected to rise to 1.6% Y/Y from 1.5% previously.
The Euro is rising on balance today, as the currency looks to recover some recent declines Only the PLN, TRY and HUF are higher than the Euro and in each case the gaiss are minimal.
The Euro is trading slightly higher on the day after the latest inflation releases. Source: xStation