Germany: Annual CPI drops to 1.4% in March as expected

• Annual HICP inflation in Germany fell to 1.3% in March.
• EUR/USD stays deep in the negative territory near mid-1.10s.

Inflation in Germany, as measured by the Consumer Price Index (CPI), is expected to fall to 1.4% on a yearly basis in March from 1.7% in February, the preliminary data published by Germany's Destatis showed on Monday. This reading matched the market expectation. On a monthly basis, the CPI registered 0.1% as forecasted.

Further details of the publication revealed that the annual Harmonized Index of Consumer Prices (HICP), the ECB's preferred gauge of inflation, dropped to 1.3% from 1.7% and fell short of analysts' estimate of 1.4%.

EUR/USD reaction

The EUR/USD pair largely ignored this data and was last seen trading at 1.1058, down 0.74% on a daily basis.