Created
: 2025.07.31
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Germany annual CPI inflation holds steady at 2% in July vs. 1.9% expected
World FX news
Breaking news
Germany annual CPI inflation holds steady at 2% in July vs. 1.9% expected
2025.07.31 21:07
2025.07.31 21:07
- Annual inflation in Germany remained unchanged at 2% in July.
- EUR/USD stays in positive territory near 1.1450 in the early American session.
Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), held steady at 2% in July, Destatis' flash estimate showed on Thursday. This reading came in above the market expectation of 1.9%.
On a monthly basis, the CPI rose by 0.3% after staying unchanged in June.
The Harmonized Index of Consumer Prices in Germany, the European Central Bank's preferred gauge of inflation, rose 1.8% on a yearly basis after increasing 2% in June. This reading came in below analysts' estimate of 1.9%.
Market reaction
The EUR/USD pair showed no immediate reaction to these figures and was last seen trading at 1.1450, gaining 0.4% on the day.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
Last updated
: 2025.07.31
Related articles
India Gold price today: Gold falls, according to FXStreet data
13 minutes agoNZD/USD steadies near 0.5850 after Q2 Retail Sales data
16 minutes agoAustralian Dollar slips as US Dollar advances despite Fed rate cut bets rise
48 minutes agoUSD/CAD struggles to gain ground as Fed's Powell turns dovish on interest rate outlook
2025.08.25 12:12USD/JPY advances to near 147.50, upside capped by BoJ hawkish signals
2025.08.25 11:20GBP/USD attracts some sellers below 1.3500 on renewed US Dollar demand
2025.08.25 11:00
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
WTI gains momentum above $63.50 as hopes for Russia-Ukraine peace deal fade
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.40 during the early Asian trading hours on Friday. The WTI edges higher after Ukraine drone attacks target Russian energy infrastructure.
New
2025.08.25 13:36India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Monday, according to data compiled by FXStreet.
New
2025.08.25 13:35NZD/USD steadies near 0.5850 after Q2 Retail Sales data
NZD/USD edged lower after registering gains in the previous session, trading around 0.5860 during the Asian hours on Monday. The pair holds losses following stronger Retail Sales data for the second quarter.
New
2025.08.25 13:32Australian Dollar slips as US Dollar advances despite Fed rate cut bets rise
The Australian Dollar (AUD) loses ground against the US Dollar (USD) on Monday after registering more than 1% gains in the previous session. The AUD/USD pair gained ground as the US Dollar depreciated amid the rising likelihood of a Federal Reserve (Fed) interest rate cut in September.
New
2025.08.25 13:00USD/CAD struggles to gain ground as Fed's Powell turns dovish on interest rate outlook
The USD/CAD pair struggles for a firm-footing during the Asian session on Monday after sliding almost 0.8% to near 1.3820 on Friday.
New
2025.08.25 12:12USD/JPY advances to near 147.50, upside capped by BoJ hawkish signals
USD/JPY appreciates after registering around 1% losses in the previous session, trading around 147.40 during the Asian hours on Monday.
New
2025.08.25 11:20GBP/USD attracts some sellers below 1.3500 on renewed US Dollar demand
The GBP/USD pair faces some selling pressure around 1.3495 during the Asian session on Monday. The major pair edges lower amid the renewed US Dollar (USD) demand. However, dovish remarks from the Federal Reserve (Fed) Chair Jerome Powell might cap the GBP/USD's downside.
New
2025.08.25 11:00EUR/USD trading around 1.1700 after pulling back from four-week highs
EUR/USD depreciates after registering around 1% gains in the previous session, trading around 1.1700 during the Asian hours on Monday.
New
2025.08.25 10:32PBOC sets USD/CNY reference rate at 7.1161 vs. 7.1321 previous
On Monday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1161 as compared to the previous day's fix of 7.1321 and 7.1551 Reuters estimate.
New
2025.08.25 10:29ECB's Nagel: There is a 'High Bar' for another rate cut
The European Central Bank (ECB) Governing Council member Joachim Nagel spoke in Jackson Hole, Wyoming, where he's attending the Federal Reserve's annual symposium.
New
2025.08.25 09:57Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
