Sign Up Log in

    Germany’s annual CPI inflation rate remains steady at 2.3%, slightly below the expected 2.4%

    by VT Markets
    /
    Nov 28, 2025
    Germany’s annual inflation rate, measured by the Consumer Price Index (CPI), remained steady at 2.3% in November, according to a preliminary estimate from the Federal Statistical Office. This is slightly lower than the expected 2.4%. The CPI also fell by 0.2% compared to the previous month. The Harmonized Index of Consumer Prices (HICP), which the European Central Bank prefers, showed a monthly decrease of 0.5% but an annual increase of 2.6%.

    Impact on Currency Market

    Following this release, there was no immediate effect on the EUR/USD currency pair. It was last seen down by 0.23% at 1.1570. German inflation staying at 2.3% indicates a small miss in expectations and shows a monthly price reduction. This is in line with the Eurozone’s flash estimate of 2.4% for November, which suggests easing price pressures. These trends imply that the European Central Bank has largely completed its work on inflation for now. In contrast, inflation in the United States remains higher, at 2.8% according to the most recent CPI figures from October. This difference suggests that the Federal Reserve is likely to keep interest rates higher for a longer time compared to the European Central Bank. For traders, this scenario supports a strategy for continued strength of the US dollar against the euro, possibly through options or futures.

    Market Strategy Implications

    Given this downward trend in inflation, we should think about changing interest rate strategies. The market is already expecting the ECB to cut rates by the second quarter of 2026, and this data could move those expectations up. Buying German Bund futures might be a sound strategy since bond prices tend to rise when expectations for rate cuts increase. The muted market reaction indicates that lower inflation is already somewhat priced in. With the VDAX volatility index near a low of 14, selling out-of-the-money puts on European equity indices like the DAX could be a sensible approach. This strategy helps us gather premiums in a climate where surprises from major central banks seem less likely. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code