Germany: Annual CPI drops to 1.2% in September vs. 1.3% expected

• Inflation in Germany is expected to soften in September.
• The shared currency largely ignored the data and stays weak against the USD.

According to the advanced estimates published by Germany's Destatis, inflation, as measured by the Consumer Price Index, is expected to be 1.2% on a yearly basis in September following August's reading of 1.4%. This figure also came in below the market expectation of 1.3%.

Further details of the publication revealed that inflation remained unchanged on a monthly basis while the Harmonized CPI fell to 0.9% and -0.1% on a monthly and yearly basis, respectively.

The EUR/USD pair's reaction was relatively muted and it was last seen trading at 1.0910, losing 0.26% on a daily basis.