Germany: Annual HICP declines to 7.8% in March vs. 7.5% expected

• Inflation in Germany declined at a softer pace than expected in March.
• EUR/USD continues to push higher toward 1.0900 after the data.

Inflation in Germany, as measured by the Consumer Price Index (CPI), declined to 7.4% on a yearly basis in March from 8.7% in February. This reading came in higher than the market expectation of 7.5%. On a monthly basis, the CPI was up 0.8%, matching February's print.

The annual Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, fell to 7.8% from 9.3% in the same period, compared to analysts' estimate of 7.5%.

Market reaction

EUR/USD continues to edge higher following these data. As of writing, the pair was up 0.4% on the day at 1.0886.