German inflation rises for fourth consecutive month in May

The inflation rate in Germany continued its upward trend in May after rising consecutively in previous three months, official data showed on Monday.

Compared with the same month last year, consumer prices in Germany increased 0.7 percent in May, said German federal statistical office Destatis, citing preliminary calculations based on data from six of Germany's 16 federal states.

It was the fourth month in a row that saw a growth of Germany's annual inflation measured by consumer price index (CPI). In February, German inflation edged up to 0.1 percent from minus 0.4 percent in January.

In March and April, the annual inflation stood at 0.3 percent and 0.5 percent respectively.

According to Destatis, energy prices fell at a slower pace. This was the main factor behind weak inflation in recent months. In May, energy prices decreased by 5 percent year-on-year, while in February it dropped by 7.3 percent.

When measured by the harmonized index of consumer prices (HICP), European Central Bank's (ECB) yardstick, German inflation rate in May also rose to 0.7 percent from 0.3 percent in April.

The inflation data of the euro zone was scheduled to be released on Tuesday. Analysts said the German data would ease concerns over deflation risks of the common currency area.

Deflation is dangerous as it could postpone consumer spending due to expectations of further price falls.

ECB set a medium-term maintenance target of inflation at "below, but close to 2 percent." The inflation rate in the 19-nation common currency area, however, teetered at low levels and dipped to negative in December last year.

In March, the HICP inflation in the euro zone was up to minus 0.1 percent after ECB started to inject fresh money into the market via purchasing government bonds and securities. In April, the euro zone inflation increased further to zero percent. Endit