BREAKING: EUR pulls back after German CPI data

Flash German CPI report for September was released today at 1:00 pm BST. Market was expecting headline German CPI to decelerate from 6.1% YoY in August to 4.6% YoY in September. State-level CPI readings released throughout the day indeed suggested that a noticeable slowdown may be reported. However, flash CPI data from Spain released this morning showed an unexpected pick-up.

Actual data from German confirmed significant deceleration that was expected and showed a slightly lower than expected reading of 4.5% YoY. EUR pulled back slightly following the release with EURUSD moving around 0.05% lower. However, the reaction was short-lived and has been completely erased within minutes of the release.

German CPI data for September

• Annual: 4.5% YoY vs 4.6% YoY expected 
• Monthly: 0.3% MoM vs 0.3% MoM expected

German state-level CPI readings

• North Rhine Westphalia: 4.2% YoY vs 5.9% YoY previously
• Hesse: 4.7% YoY vs 6.0% YoY previously
• Bavaria: 4.1% YoY vs 5.9% YoY previously
• Brandenburg: 5.6% YoY vs 7.1% YoY previously
• Baden Wuerttemberg: 5.1% YoY vs 7.0% YoY previously
• Saxony: 5.4% YoY vs 6.8% YoY previously

Source: Bloomberg Finance LP