Germany: Annual HICP declines to -0.7% (preliminary) in November vs. -0.5% expected

• Annual HICP in Germany fell sharply in November.
• EUR/USD pulls away from highs after the data. 

Inflation in Germany, as measured by the Consumer Price Index (CPI), was -0.8% November, Destatis reported in its flash estimate on Monday. This reading followed the 0.1% increase seen in October and missed the market expectation of -0.7%.

Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred gauge of inflation, slumped to -0.7% on a yearly basis and came in lower than analysts’ estimate of -0.5%.

Market reaction

The EUR/USD pair edged lower after this report and was last seen trading at 1.1974, where it was up only 0.1% on a daily basis.