German inflation rises to 0.7% on the year in May

The German consumer price index rose to 0.7% in May from 0.5% in April, in line with expectations, according to preliminary data released by Destatis.

Month-on-month, the Harmonised Index of Consumer Prices rose 0.1% compared with -0.1% in April.

Goods prices fell 0.3%, while services prices were 1.5% and food prices rose 1.4%.

"The increase of the rate in May has a similar order of magnitude as those in Spain and Italy, suggesting that common factors, including volatile food and energy prices and the impact of the weaker euro on the “prices of some imported goods were key drivers,” said Christian Schultz, senior economist at Berenberg.

"Specific to Germany may be the impact of the new national minimum wage on the price of some services, which may gradually push up inflation as well," he added.