Germany: Annual HICP inflation declines to 6.3% in May vs. 6.8% expected

• Inflation in Germany came in lower than expected in May.
• EUR/USD stays in negative territory below 1.0700 after the data.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 6.1% on a yearly basis in May from 7.2% in April. This reading came in below the market expectation of 6.5%. On a monthly basis, the CPI fell 0.1% following April's 0.4% increase.

The annual Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, rose 6.3% in the same period, compared to 7.6% in April and analysts' estimate of 6.8%.

Market reaction

The EUR/USD pair showed no immediate reaction to soft German inflation figures and was last seen losing 0.5% on a daily basis at 1.0682.