BREAKING: EUR weakens slightly after German inflation data

Annual inflation rate in Germany rose to 8.7% YoY in January, from 8.6% YoY in previous month, below market estimates of 8.9% preliminary estimates showed. The statistical office changed the CPI base year to 2020 from 2015 and a technical programme made it necessary to postpone the release of the preliminary CPI.

On a monthly basis, the inflation rose to 1.0%, in January from -0.8% in the previous month and above market estimates of 0.8% increase. In December when a federal one-off payment to cover the monthly installment for gas and heat for all households and small- to medium-sized businesses came into effect, pressuring the inflation down. 

The EU-harmonized index fell to 9.2% from 9.6%, below forecasts of 10%.

EURUSD bounced off the1.0740 resistance after release of today’s German inflation data. Source:xStation5