March Final CPI data for Germany remain unchanged as predicted at 2.1% on a year over year basis and at 0.5% month over month.
CPI is generally a good indication of a country’s inflation. Any increase in the figure shows an increase in inflation as prices are rising. This will result in an appreciation of the country’s currency.
Final German CPI data is compiled by Destatis on a monthly basis. It measures the change in the price of goods and services purchased by consumers. The Final CPI does not have as much as an impact as the Preliminary CPI which is released 15 days prior.
The data were released at 0700GMT just as the European trading session began. EURUSD dropped over 16 pips from 1.4403 down to 1.4386 within 20 minutes into trading.