Germany annual CPI inflation declines to 2.2% in June vs. 2.3% expected

• Annual CPI inflation in Germany edged lower to 2.2% in June.
• EUR/USD consolidates daily gains near 1.0750 after the data.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 2.2% on a yearly basis in June, Germany's Destatis reported on Monday. This reading followed the 2.4% increase recorded in May and came in below the market expectation of 2.3%. On a monthly basis, the CPI rose 0.1%, matching May's increase.

The Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, rose 0.2% on a monthly basis as forecast. The annual HICP increased 2.5% in the same period, down from 2.8% in May.

Market reaction

EUR/USD showed no immediate reaction to these figures. At the time of press, the EUR/USD pair was up 0.3% on the day at 1.0745.