Germany's Federal Statistical Office (Destatis) reported on Wednesday the country’s consumer price index (CPI) is expected to increase 0.5 percent m-o-m in December after dropping 0.8 percent m-o-m in the previous month.

On the y-o-y basis, Germany’s CPI is seen to fall 0.3 in December, the same pace as in November. This represents the largest decline since January 2015.

Economists had predicted inflation would rise 0.6 percent m-o-m but decline 0.3 percent y-o-y in December.

According to the report, food price rose 0.5 percent y-o-y in December after a 1.4 percent y-o-y gain in November. Services costs grew 1.1 percent y-o-y in December, the same pace as in the previous month Energy prices dropped 6.0 percent y-o-y after a 7.7 percent y-o-y decline in November.

Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to rise 0.6 percent m-o-m and drop 0.7 percent y-o-y.