BREAKING: Final CPI in Germany, food drives prices!

Germany, CPI report for June:

• the inflation rate in Germany came at +6.4% y/y, slightly higher than the previous month's rate of +6.1%.
• Food prices remained the biggest driver of inflation, with a y/y increase of +13.7%.
• Energy product prices rose by 3.0% y/y, influenced by factors such as the Russian attack on Ukraine and government relief measures.
• Core CPI: Excluding energy and food, the inflation rate was +5.8%.
• Goods prices increased by 7.3% y/y, mainly driven by non-durable consumer goods (+8.8%).
• Service prices rose by 5.3% y/y, with net rents and the introduction of the Germany ticket affecting price developments.

The inflationary pressure in the largest economy of the EU remains high. Inflation came in line with expectations but at a higher level compared to the previous month. The higher data from Germany strongly supports the continuation of the interest rate hike cycle by the ECB.

EURUSD ticks higher after the publication, M15 interval, source xStation 5