- Inflation in Germany rose at a stronger pace than expected in September.
- EUR/USD trades above 0.9700 after hot German CPI data.
Annual inflation in Germany, as measured by the Consumer Price Index (CPI), climbed to 10% in September from 7.9% in August, Germany's Destatis reported on Thursday. This reading came in higher than the market expectation of 9.4.
Meanwhile, the Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, jumped to 10.9% from 8.8%, compared to analysts' estimate of 10%.
On a monthly basis, the CPI and the HICP arrived at 1.9% and 2.2%, respectively, surpassing market forecasts.
Market reaction
The EUR/USD pair continues to trade above 0.9700 after the German inflation data.
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