It was a quiet day on the Eurozone economic calendar. Finalized German inflation figures were in focus going into the European open.
In November, German consumer prices fell by 0.2%, which was in line with prelim figures. Consumer prices had risen by 0.5% in October.
Germany’s annual rate of inflation accelerated from 4.5% to 5.2%, which was also in line with prelim figures.
According to Destatis,
- The inflation rate increased for the 6th time in a row, reaching the highest level recorded in 2021.
- A higher inflation rate was last recorded in Jun-1992, when the rate of inflation was 5.8%.
- Compared with Nov-2020, energy prices were up 22.1%, with prices for food up 4.5%.
- Excluding energy, Germany’s annual rate of inflation stood at 3.4%.
- Prices for services increased by 2.9% compared with the same month a year earlier, also exceeding the ECB’s 2%.
Market Impact
Ahead of today’s stats, the EUR had risen to a pre-stat and current day high $1.13029 before easing back.
In response today’s stats, the EUR rose to a post-stat high $1.12981 before falling to a post-stat and current day low $1.12865.
At the time of writing, the EUR was down by 0.04% to $1.12883.
Next Up
U.S inflation and consumer sentiment figures. The markets are eager to assess whether there is another spike in inflation to force the FED into action…