• Annual CPI inflation in Germany edged higher to 2.4% in May.
• EUR/USD recovered to the 1.0850 area after the data.

Inflation in Germany, as measured by the change in the Consumer price Index (CPI), rose to 2.4% on a yearly basis in May, Germany's Destatis reported on Wednesday. This reading followed the 2.2% increase recorded in April and came in line with the market expectation. On a monthly basis, the CPI rose 0.1%.

The Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, rose 0.2% on a monthly basis as forecast. The annual HICP increased 2.8% in the same period, up from 2.4% in April and above analysts' estimate of 2.7%.

Market reaction

EUR/USD edged higher with the immediate reaction and was last seen trading flat on the day at 1.0855.