Headline inflation in Germany rose at a pace of 7.6% YoY and 2.5% MoM in March according to the preliminary estimate of the Harmonized Index of Consumer Prices (HICP) released by Destatis on Wednesday. That was well above the median economist forecast for a YoY reading of 6.7% and a MoM reading of 1.8%. HICP is the ECB's preferred inflation gauge versus the Consumer Price Index (CPI). Speaking of, the headline German CPI rose at a pace of 7.3% YoY and 2.5% MoM, also well above expectations for 6.3% and 1.6% readings.  

The 2.1% jump in the YoY rate of HICP was the largest ever and saw HICP inflation at its highest since records began in the mid-90s. The MoM rate of HICP inflation was also its highest ever. Meanwhile, the 2.2% jump in the YoY rate of headline CPI inflation was the largest since the early 90s and saw it hit its highest since the early 80s. The MoM rate of CPI was its highest ever (going all the way back to 1970). 

Market Reaction

Regional German CPI data released earlier in the session pointed to a much larger than expected increase in MoM and YoY inflation rates, hence the euro has not reacted.