German CPI report for May was released today at 1:00 pm BST. A slew of state-level report released earlier today suggested that reading for the whole of Germany may surprise to the downside today. Downside surprises in Spanish data, released yesterday, and French data, released this morning, support this scenario further.
Actual report confirmed what was suggested by state-level readings - German CPI inflation dropped more than expected in May. CPI slowed from 7.2% YoY to 6.1% YoY, much more than an expected decline to 6.5% YoY. On a monthly basis, prices dropped 0.1% MoM. This was the first negative monthly reading since December 2022.
Germany, CPI inflation for May
- Annual: 6.1% YoY vs 6.5% YoY expected (7.2% YoY previously)
- Monthly: -0.1% MoM vs 0.2% MoM expected (0.4% MoM previously)
German state-level CPI readings for May
- North Rhine Westphalia: 5.7% YoY vs 6.7% YoY previously (revised lower from 6.8%)
- Hesse: 5.9% YoY vs 6.9% YoY previously
- Bavaria: 6.1% YoY vs 7.2% YoY previously
- Brandenburg: 6.3% YoY vs 7.6% YoY previously
- Baden Wuerttemberg: 6.6% YoY vs 7.3% YoY previously
- Saxony: 6.5% YoY vs 7.6% YoY previously
However, as a lower German CPI reading for May was expected following state-level readings and reports from other EMU countries, market reaction has been muted. EURUSD moved slightly higher while German DE30 traded flat following the release.
EURUSD at 15-minute interval. Source: xStation5
Morning Wrap: Dollar in a trap, all eyes on NFP 🏛️(February 11, 2026)
BREAKING: US RETAIL SALES BELOW EXPECTATIONS
Economic calendar: Indices and EURUSD await US retail sales report
Morning wrap (10.02.2026)
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
