The consumer prices in Germany annually expanded 7.5% in July compared to the same month a year ago, slipping versus the previous month's reading but still landing above market estimates. The expansion was led by soaring prices of energy (35.7%) and food products (14.8%).
The monthly inflation rose to 0.9% according to a report published by the Federal Statistical Office on Thursday, prompting concerns of a further spike once the government's subsidies expire at the end of August.
In response to soaring inflation, the European Central Bank announced its first interest rate hike in 11 years last week, increasing key rates by 50 basis points. Following the data, the euro extended losses against the dollar by sliding 0.75% at 2:08 pm CET to sell for 1.01190.
