Germany: Annual CPI rises to 10.4% in October vs. 10.1% expected

• Inflation in Germany rose at a stronger pace than expected in October.
• EUR/USD trades in negative territory at around 0.9950 after hot German CPI data.

Annual inflation in Germany, as measured by the Consumer Price Index (CPI), climbed to 10.4% in October from 10% in September, Germany's Destatis reported on Friday. This reading came in higher than the market expectation of 10.1%.

Meanwhile, the Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, jumped to 11.6% from 10.9%, compared to analysts' estimate of 10.9%.

On a monthly basis, the CPI and the HICP arrived at 0.9% and 1.1%, respectively, surpassing market forecasts.

Market reaction

The EUR/USD pair showed no immediate reaction to these figures and was last seen losing 0.08% on the day at 0.9955.