# German inflation drops to lowest level in more than a year

> Germany's inflation rate fell to its lowest level in more than a year, according to official data released on May 31. The decline joined similar cooling reports from other major euro zone economies.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/36151-german-inflation-drops-to-lowest-level-in-more-than-a-year
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Cooling euro zone inflation reduces pressure on the ECB to keep hiking, which tends to weaken the euro and strengthen the dollar, lifting dollar-denominated commodity costs for importers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2017-01-30 | [Euro hits 11-day low after German inflation data miss](https://feedsoft.ai/events/73169-euro-hits-11-day-low-after-german-inflation-data-miss.md) | +1.0% | -0.6% |
| EURUSD | 2024-06-11 | [Euro drops to a one-month low; US dollar firms ahead of key inflation test  - The Business Times](https://feedsoft.ai/events/29986-euro-drops-to-a-one-month-low-us-dollar-firms-ahead-of-key-inflation-test-the.md) | -0.3% | +0.7% |
| EURUSD | 2021-09-28 | [Sterling drops more than 1%](https://feedsoft.ai/events/45308-sterling-drops-more-than-1.md) | -0.7% | -1.0% |
| EURUSD | 2018-05-16 | [US and German bond yields have widened to levels not seen in almost 30 years](https://feedsoft.ai/events/65212-us-and-german-bond-yields-have-widened-to-levels-not-seen-in-almost-30-years.md) | -0.7% | -0.7% |
| EURUSD | 2019-11-29 | [Euro-Dollar Gets No Joy from Inflation Gains as German Politics and U.S. Tariff Threat Loom](https://feedsoft.ai/events/56280-euro-dollar-gets-no-joy-from-inflation-gains-as-german-politics-and-u-s-tariff.md) | +0.9% | +1.6% |
| DXY | 2023-10-04 | [Rand falls to lowest level against the dollar in months](https://feedsoft.ai/events/33924-rand-falls-to-lowest-level-against-the-dollar-in-months.md) | -0.8% | +0.0% |
| DXY | 2022-04-28 | [Gold hits lowest level in more than 2 months on lofty dollar, imminent U.S. rate hike](https://feedsoft.ai/events/41758-gold-hits-lowest-level-in-more-than-2-months-on-lofty-dollar-imminent-u-s-rate.md) | +0.1% | -0.4% |
| DXY | 2017-01-30 | [Euro hits 11-day low after German inflation data miss](https://feedsoft.ai/events/73169-euro-hits-11-day-low-after-german-inflation-data-miss.md) | -1.2% | -1.2% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/inflation-dips-german-states-pointing-national-drop-2023-05-31/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.