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German consumer prices rise 0.1% in May

Staff writer |
Consumer prices in Germany are expected to increase slightly by 0.1 percent on the year in May of 2016, recovering from a 0.1 percent drop in the previous month, matching market expectations.

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Cost of services and rents rose further while energy prices declined at a slower pace.

Year-on-year, prices of goods are expected to drop 0.9 percent, compared to a 1 percent fall in April, as cost of energy fell at a slower pace (-7.9 percent from -8.5 percent in the previous month) while food prices showed no growth (from +0.5 percent).

In contrast, prices of services are expected to grow 1.2 percent, accelerating from a 0.8 percent gain in April. Cost of rents is expected to go up 1.1 percent (+1 percent in the previous month).

On a monthly basis, consumer prices are expected to rise 0.3 percent percent following a 0.4 percent drop in April.

The harmonised index of consumer prices is expected to remain unchanged from the previous year. Compared with April 2016, it is expected to increase by 0.4 percent.

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