Germany's Federal Statistical Office reported on Thursday the country’s consumer price index (CPI) is expected to decrease 0.2 percent m-o-m in August, following a 0.5 percent m-o-m advance in the previous month. That marked the first monthly drop since January.

On the y-o-y basis, Germany’s inflation rate is seen to rise 1.4 percent this month after a 1.7 percent gain in July.

Economists had predicted inflation would drop 0.1 percent m-o-m but increase 1.5 percent y-o-y in August.

According to the report, food price growth accelerated to 2.7 percent y-o-y in August from 2.1 percent y-o-y in July, while energy inflation slowed to 0.6 percent y-o-y from 2.4 percent y-o-y. Services costs rose 1.6 percent y-o-y, following a 1.5 percent y-o-y climb in the previous month.

Meanwhile, the harmonized index of consumer prices for Germany (HICP), which is calculated for European purposes, is expected to fall 0.1 percent m-o-m and to increase 1.0 percent y-o-y.