Germany annual CPI inflation holds steady at 2.1% as forecast

• Annual inflation in Germany remained unchanged at 2.1% in May as expected.
• EUR/USD stays in daily range below 1.1350 after the data.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), held steady at 2.1% on a yearly basis in May, Destatis' flash estimate showed on Friday. This reading came in line with the market expectation.

On a monthly basis, the CPI rose 0.1% following the 0.4% increase recorded in April.

The Harmonized Index of Consumer Prices in Germany, the European Central Bank's preferred gauge of inflation, rose 2.1% on a yearly basis after rising 2.2% in April. This reading came in above analysts' estimate of 2%.

Market reaction

These figures don't seem to be having a noticeable impact on the Euro's valuation. At the time of press, EUR/USD was down 0.25% on the day at 1.1337.