Germany: Annual HICP rose to 4.1% in September from 3.4% previous

• HICP inflation in Germany rose to 4% in September.
• EUR/USD remains depressed near the 1.1575 region. 

According to the preliminary estimate published by Destatist this Thursday, consumer inflation in Germany, as measured by CPI, remained flat for the second successive month in September as against market expectations for a modest 0.1% rise. On a yearly basis, the headline CPI rose 4.1% during the reported month from 3.9% in August, again missing expectations for a reading of 4.2%.

Further details of the publication revealed that the Harmonized Index of Consumer Prices (HICP), the European Central Bank's preferred gauge of inflation, accelerate to 4.1% annually from 3.4% reported in the previous month.

Market reaction

Signs of rising inflationary pressure in the Eurozone did little to provide any impetus to the shared currency or lend any support to the EUR/USD pair, which remains at the mercy of the USD price dynamics. The pair remained depressed near the 1.1575 region, or the lowest level since July 2020 as traders now look forward to the final US GDP print for a fresh impetus.