- Annual HICP inflation in Germany was 7.8% in April, a tad above expected.
- FX markets did not react to the latest figures, which didn’t deviate to much from expectations.
Inflation in Germany according to the Harmonised Index of Consumer Prices (HICP) rose at a YoY pace of 7.8% in April, according to a preliminary data release from the Destatis, the Statistical Office of the EU, on Thursday. That was higher than median economist forecasts for the YoY rate of inflation to have stayed unchanged at 7.6%. The MoM gain in HICP in April was 0.7%, a little above expectations for a 0.4% gain but marking a deceleration after March’s 2.5% jump.
Inflation in Germany according to the Consumer Price Index came in at 7.4% in April, above the expected drop to 7.2% from 7.3% in March. MoM, the CPI rose 0.8%, above expectations for a 0.6% rise, but also marking a deceleration after prices rose at a MoM pace of 2.5% in March.
Market Reaction
FX markets were unreactive to the latest national German inflation numbers, which were only slightly higher than expected, but will nonetheless keep the pressure on the ECB to start lifting interest rates in Q3.