Germany annual CPI inflation holds steady at 2.2% in April

• Annual CPI inflation in Germany held steady at 2.2% in April.
• EUR/USD trades in positive territory above 1.0700 after the data.

Inflation in Germany, as measured by the change in the Consumer price Index (CPI), remained unchanged at 2.2% on a yearly basis in April, Germany’s Destatis reported on Monday. This reading came in below the market expectation of 2.3%. On a monthly basis, the CPI rose 0.5% following the 0.4% increase recorded in March.

The Harmonized Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred gauge of inflation, rose 0.6% on a monthly basis as forecast. The annual HICP increased 2.4% in the same period, up from 2.3% in March.

Market reaction

EUR/USD edged slightly higher with the immediate reaction to German inflation data and was last seen rising 0.27% on the day at 1.0720.