BREAKING: German inflation higher than expected 📈 EURUSD muted

01:00 PM BST, Germany - Inflation Data for August:

• German CPI: actual 2.2% YoY; forecast 2.1% YoY; previous 2.0% YoY;

• German CPI: actual 0.1% MoM; forecast 0.0% MoM; previous 0.3% MoM;

• German HICP: actual 2.1% YoY; forecast 2.0% YoY; previous 1.8% YoY;

• German HICP: actual 0.1% MoM; forecast 0.0% MoM; previous 0.4% MoM;

The first CPI reading for August point to a faster-than-excpected price increase in the German economy, following the slight upward pressure displayed in the regional data from federal states. Core inflation (ex. food and energy) remained at 2.7% YoY, while services CPI persisted at 3.1%, showing signs of the ongoing stickiness despite realitvely weak demand.

Amoung most volatile categories, energy contributed the most downwards (-2.4%), in line with global trends due to lower oil prices, while food prices have grown 2.5%.

Initially muted EURUSD extended losses from recent hours, although the drop halted at 100-hour EMA, setting the stage for the volatiltiy to come with US PCE data release.

Source: xStation5