The Federal Statistical Office (Destatis) reported its preliminary estimates showed the inflation rate in Germany as measured by the consumer price index (CPI) rose to 1.7 percent y-o-y in July after gaining 1.6 percent in June. Economists had forecast the inflation would ease to 1.5 percent. That was the highest inflation rate since April, mainly boosted by rising energy prices, which demonstrated a 0.9 percent y-o-y surge in July after flat performance in June. Meanwhile, food inflation slowed marginally to 2.7 percent y-o-y this month from 2.8 percent y-o-y a month ago.

On a monthly basis, consumer prices rose 0.4 percent, also above economists' expectations of 0.2 percent.

The harmonized index of consumer prices (HICP) for Germany, which is calculated for European purposes, increased in July by 1.5 percent y-o-y and by 0.4 percent m-o-m.

The final results for July will be released on 11 August, the report said.