The annual Harmonized Index of Consumer Prices (HICP), the European Central Bank's preferred gauge of inflation, rose to 6.0% from 4.6% in October, compared to analysts' estimate of 5.4%. MoM, the HICP was up 0.3%, above consensus expectations for a 0.5% drop. 

Looking at the alternate Consumer Price Index numbers; the YoY number came in at 5.2%, above expectations for 5.0%, while the MoM change was -0.2%, above expectations for a larger 0.5% drop. 

Market Reaction

The euro has not seen a reaction to the latest German inflation numbers, given that the state figures had been trickling out throughout the morning and did point to an upside surprise. But the hotter than expected German inflation numbers put pressure on the ECB not to be overly dovish and seem to support the consensus view that the PEPP should definitely end in March 2022.