Germany: Annual HICP drops to -0.1% (preliminary) in August vs. 0% expected

• HICP in Germany declined to -0.1% on a yearly basis in August.
• EUR/USD continues to trade in the positive territory after the data. 

Inflation in Germany, as measured by the Consumer Price Index (CPI), was -0.1% (preliminary) in August. This reading followed July’s print of -0.5% and came in lower than the market expectation of 0%. On a yearly basis, the CPI was 0%.

Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred gauge of inflation, edged lower to -0.1% annually and fell short of analysts’ estimate of 0%.

Market reaction

These data don’t seem to be having a significant impact on the shared currency’s performance against its rivals. As of writing, the EUR/USD pair was up 0.3% on the day at 1.1938.