Germany's Federal Statistical Office (Destatis) reported on Thursday the country’s consumer price index (CPI) is expected to decrease 0.1 m-o-m in May after gaining 0.4 percent m-o-m in the previous month.

On the y-o-y basis, Germany’s inflation rate is seen to rise 0.6 percent this month, following a 0.9 percent advance in April. That is the lowest inflation rate since September 2016.

Economists had predicted inflation would drop 0.1 percent m-o-m, but would increase 0.6 percent y-o-y in May.

According to the report, food price growth decelerated to 4.5 percent y-o-y in May from 4.8 percent y-o-y in April, while energy prices fell 8.5 percent y-o-y after a 5.8 percent y-o-y drop in the previous month. Services costs rose 1.3 percent y-o-y in May, the same pace as in April.

Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to be flat m-o-m and to increase 0.5 percent y-o-y.