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German consumer price inflation eased to the lowest since 2016, preliminary data from Destatis revealed Thursday.

Consumer price inflation slowed to 0.6 percent in May from 0.9 percent in April. The rate came in line with expectations. A similar lower rate was last reported in September 2016.

On a monthly basis, consumer prices dropped 0.1 percent in May, as expected.

Data showed that cost of goods fell 0.4 percent annually, while cost of services increased 1.3 percent in May.

Inflation, based on the harmonized index of services, slowed to 0.5 percent from 0.8 percent a month ago. The annual rate matched expectations. This was the lowest rate since August 2016, when prices climbed 0.3 percent.

Month-on-month, the harmonized index of consumer prices remained flat, while economists had forecast a 0.1 percent fall.



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