News and Information from the Financial Markets


Inflation in Germany and Spain declines, Indices reacts with rise

According to the data already available from five German federal states, inflation in Germany is falling significantly. The German indices react with a rise.

Prior to the publication of the inflation data for Germany at 14:00 CET, the data for five federal states were published at 10:00. These show a clear slowdown in the rise in consumer prices. Inflation in Baden-Württemberg, for example, amounted to 3.4% last month, one percentage point below the forecast.In Bavaria, the price increase of 2.8% was below the 3% mark and 0.9% lower than forecast. The data from the federal states suggests that the inflation rate for Germany as a whole will also be well below the forecast 3.5%.

The German stock indices reacted to the first data on inflation in Germany with a significant rise in some cases. The DAX is currently up by around 1.05% and the TecDAX by 1.36%. In addition to the German inflation data, the Spanish inflation data was also published in the morning. Contrary to an expected increase of 0.2%, the rise in consumer prices actually fell by 0.3% and stood at 3.2% in November. Even if falling inflation does not suggest a change in interest rate policy is imminent, it is likely that the ECB's cycle of interest rate hikes has come to an end.

In contrast, the euro initially reacted to the German inflation data with losses against the US dollar. A possible end to the European Central Bank's restrictive monetary policy would significantly reduce its current advantage over the US dollar, which is weakening due to the Fed's loosening interest rate policy. The EUR/USD currency pair is currently trading at 1.9073, down 0.15 %.


Related Articles

Risk Warning: Trading CFDs and other leveraged financial products on margin and derivatives always involves a high degree of risk. There is a possibility of losing all or part of your invested capital. Therefore, these products may not be suitable for all investors. Please ensure that you obtain detailed information on these products and/or consult an independent financial advisor.

The website operator may be remunerated by advertisers on this website based on your interaction with the advertisements or advertisers.

Disclaimer: The authors' assessments of market behaviour contained on this website do not constitute financial advice or a solicitation or recommendation to buy or sell financial products, but are merely a personal assessment. If you incorporate the author's assessment into your decision, you do so entirely at your own risk. If you trade in financial products, you must be aware that you may incur a loss of up to the amount of your entire investment. Actively familiarise yourself with trading and the characteristics of the instruments, especially leveraged derivatives, and/or seek independent advice before investing your own money and only use capital that you can afford to lose.

We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.