BREAKING: German inflation rate surges to 7.3% in March

Annual inflation rate in Germany rose to 7.3% YoY in March, from 5.1% YoY in previous month and well above market estimates of 6.3%. On a monthly basis, the inflation rose to 2.5% from 0.9% in February and above market estimates of 1.6%.

Harmonised Inflation Rate YoY  increased to 7.6% in March from 5.5% in January.

Higher reading was expected after earlier CPI readings from German regions showed major acceleration:

• North Rhine Westphalia: 7.6% YoY vs 5.3% YoY previously
• Bavaria: 7.8% YoY vs 5.3% YoY previously
• Hesse: 8.0% YoY vs 5.7% YoY previously
• Brandenburg: 7.3% YoY vs 5.4% YoY previously
• Baden-Wuerttemberg: 6.3% YoY vs 4.7% YoY

EURUSD saw relatively small reaction to today’s data inflation release. The most popular currency pair continued to trade around 1.1140 level. Source: xStation5