Germany: Annual HICP drops to -0.5% (preliminary) in September vs. -0.4% expected

• HICP in Germany fell to -0.5% on a yearly basis in September.
• EUR/USD remains depressed near 1.1700 after the data.

Inflation in Germany, as measured by the Consumer Price Index (CPI), was 0.1% (preliminary) in September, the data published by Destatis showed on Thursday. This reading followed August's print of -0.2% and came in higher than the market expectation of 0%. On a yearly basis, the CPI stayed unchanged at -0.2%.

Further details of the publication revealed that the Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, declined to -0.5% in September from -0.4% on a yearly basis. This print missed analysts' estimate of -0.4%.

Market reaction

The EUR/USD pair showed no immediate reaction to this data as investors wait for the European Central Bank President Christine Lagarde to deliver her remarks on the policy outlook. As of writing, the pair was down 0.37% on the day at 1.3700.