Germany's Federal Statistical Office reported on Tuesday the country’s consumer price index (CPI) is expected to increase 0.5 percent m-o-m in July, following a 0.3 percent m-o-m advance in the previous month.

On the y-o-y basis, Germany’s inflation rate is seen to rise 1.7 percent this month after a 1.6 percent gain in June. That marked the fastest pace since April.

Economists had predicted inflation would increase 0.3 percent m-o-m and 1.5 percent y-o-y in July.

According to the report, food price growth accelerated to 2.1 percent y-o-y in July from 1.2 percent y-o-y in June, while energy inflation slowed to 2.4 percent y-o-y from 2.5 percent y-o-y. Services costs climbed 1.5 percent y-o-y, following a 1.9 percent y-o-y jump in the previous month.