Germany: Annual HICP drops to -0.4% (preliminary) in September vs. -0.1% expected

• HICP in Germany fell to -0.4% on a yearly basis in September.
• EUR/USD clings to daily gains above 1.1700 after the data.

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

Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, slumped to -0.4% in September from -0.1% on a yearly basis and missed analysts' estimate of -0.1%.

Market reaction

The EUR/USD pair largely ignored this data and was last seen gaining 0.35% on a daily basis at 1.1705.