Data released by Destatis, the German statistics office earlier on Tuesday showed that import prices in Germany, Europe’s biggest economy, decreased at a slower-than-expected pace in May.
The import price index fell 5.5% year-over-year in May, slower when compared to the 6.6% year-over-year decline in April. The annual decline in May was largely drive by a 26.5% slump in energy prices. Excluding energy, import prices slid 2.7%. Export prices dipped 1.6% yearly in May, while it edged up 0.2% from a month earlier.
On a monthly basis, import prices rose 0.9% in May, reversing a 0.1% decrease in the preceding month. That was above economists' expectations for a 0.6% rise.
The eurozone’s annual inflation rate remains stuck in negative territory coming in at -0.1 percent for May. Overall, inflation pressures in the euro zone remain weak, but will likely change as energy prices normalize.
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