Germany: Annual HICP declines to 2.1% in June as expected

• HICP inflation in Germany edged lower in June.
• EUR/USD remains on the back foot, trades below 1.1900.

Inflation in Germany, as measured by the Consumer Price Index (CPI), edged lower to 0.4% (preliminary) on a monthly basis in June from 0.5% in May, the data published by Destatist showed on Tuesday. On a yearly basis, the CPI declined to 2.3% from 2.5%. Both of these readings came in line with the market expectation.

Further details of the publication revealed that the Harmonized Index of Consumer Prices (HICP), the European Central Bank's preferred gauge of inflation, fell to 2.1% annually from 2.4% and matched analysts' estimates. 

Market reaction

The EUR/USD pair edged lower after this report and was last seen losing 0.28% on the day at 1.1890.