German CPI jumps past forecasts in May on food and energy

The cost-of-living in Germany jumped past forecasts last month as food price gains continued to accelerate and energy costs picked up once more.

According to a preliminary estimate from the Federal Office of Statistics, the German Consumer Price Index was up by 0.9% month-on-month in May, pushing the annual rate of inflation from 7.4% in the month before to 7.9% (consensus: 7.6%).

Energy inflation reaccelerated a tad, rising from 35.3% versus a year earlier in April to 38.3%, while food prices gained 11.1%, versus an increase of 8.6% in April.

The rate of increase in services prices' on the other hand eased, from 3.2% to 2.9%.

On a harmonised basis meanwhile, which means that the data can be compared to other European Union countries', CPI was 1.1% higher on the month and by 8.7% year-on-year.

In the background, as of 1637 GMT, front-dated Brent crude oil futures had again cleared the $120 per barrel level and were up by 1.09% for the session.

Reports on Monday indicated that EU leaders had agreed in principle on a partial embargo on imports of Russian oil aimed at seaborne supplies as opposed to those sent through pipelines.

Euro/dollar was ahead by 0.42% to 1.0780.