Germany: Annual HICP drops to 0% in July vs. 0.4% expected

• HICP in Germany fell to 0% on a yearly basis in July.
• EUR/USD continues to trade in the negative territory around 1.1750.

Inflation in Germany, as measured by the Consumer Price Index (CPI), fell to -0.5% (preliminary) on a monthly basis in July from 0.6% in June and came in lower than the market expectation of -0.2%. On a yearly basis, the CPI dropped to -0.1% from 0.9%, the data published by the Destatis showed on Thursday.

Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, edged lower to 0% annually and fell short of analysts' estimate of 0.4%.

Market reaction

The EUR/USD pair largely ignored these figures and was last seen trading at 1.1747, losing 0.35% on a daily basis.