Annual HICP in Germany rose sharply in January amid changes in VAT. EUR/USD trades in the negative territory a little below 1.2100. Inflation in Germany, as measured by the Consumer Price Index (CPI), was 0.8% in January, Destatis reported in its flash estimate on Thursday. Moreover, the annual CPI rose to 1% from -0.3% in December. Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred gauge of inflation, jumped to 1.6% on a yearly basis and surpassed the market expectation of 0.5% by a wide margin. However, this surprising increase in inflation is largely attributed to the changes in VAT that came into effect in January. In July, Germany reduced the VAT to 16% from 19% and the standard rate to 5% from 7% until the end of December due to the coronavirus crisis. Market reaction The EUR/USD pair showed no immediate reaction to this report and was last see posting small daily losses at 1.2096. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Breaking: US economy expands by in 4% in Q4, DXY clings to gains near 90.80 FX Street 1 year Annual HICP in Germany rose sharply in January amid changes in VAT. EUR/USD trades in the negative territory a little below 1.2100. Inflation in Germany, as measured by the Consumer Price Index (CPI), was 0.8% in January, Destatis reported in its flash estimate on Thursday. Moreover, the annual CPI rose to 1% from -0.3% in December. Additionally, the Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, jumped to 1.6% on a yearly basis and surpassed the market expectation of 0.5% by a wide margin. However, this surprising increase in inflation is largely attributed to the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
