German CPI inflation data for October was released at 1:00 pm BST today and surprised to the upside. Headline inflation came in at 10.4% YoY while market expected a 10.1% YoY reading. This is a noticeable acceleration from 10.0% YoY reported for September. On a month-over-month basis CPI came in at 0.9% MoM (exp. 0.6% MoM).
However, market reaction to the release was rather muted. This is because state-level inflation data from Germany released earlier in the day was a strong hint that country-wide reading will come above market expectations. Inflation accelerated in each state that reported data and in most cases those were quite significant increases.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appGerman state CPI readings for October:
-
North Rhine Westphalia: 11.0% YoY vs 10.1% YoY previously
-
Hesse: 9.9% YoY vs 9.4% YoY previously
-
Baden Wuerttemberg: 9.8% YoY vs 9.5% YoY previously
-
Bavaria: 11.0% YoY vs 10.8% YoY previously
-
Brandenburg: 10.8% YoY vs 9.9% YoY previously
-
Saxony: 10.1% YoY vs 9.2% YoY previously
When it comes to market reaction, EURUSD barely saw any move and continued to trade in the 0.9950 area while DE30 ticked lower.
EURUSD did not experience any major reaction to German CPI beat. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
