Germany: Annual HICP rises to 3.1% in June vs. 2.9% expected

• HICP inflation in Germany rose sharply in June.
• EUR/USD remains in the positive territory near 1.1870.

Inflation in Germany, as measured by the Consumer Price Index (CPI), jumped to 0.9% (preliminary) on a monthly basis in June from 0.4% in May. On a yearly basis, the CPI rose to 3.8% from 2.2%. Both of these readings came in higher than market expectations.

Further details of the publication revealed that the Harmonized Index of Consumer Prices (HICP), the European Central Bank's preferred gauge of inflation, climbed to 3.1% annually from 2.1% and surpassed analysts' estimate of 2.9%.

Market reaction

The EUR/USD pair largely ignored this report and was last seen gaining 0.27% on a daily basis at 1.1874.