• Inflation in Germany rose at a stronger pace than expected in October.
• EUR/USD stays above 1.0800 following the German CPI data.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), rose to 2% on a yearly basis in October from 1.6% in September, Destatis' flash estimate showed on Wednesday. This reading came in above the market expectation of 1.8%.

On a monthly basis, the CPI rose 0.4% after staying unchanged in September.

The Harmonized Index of Consumer Prices in Germany, the European Central Bank's preferred gauge of inflation, increased 2.4% on a yearly basis, up sharply from the 1.8% increase recorded in September.

Market reaction

EUR/USD recovered slightly from session lows after these data and was last seen trading flat on the day near 1.0820.