German inflation rate rises to 0.7% in May

German shoppers Image copyright Getty Images

German consumer prices rose by 0.7% year-on-year in May, as the inflation rate increased for the fourth consecutive month.

Compared with April 2015, the consumer price index rose by 0.1%, Germany's statistics office Destatis said.

Pressures driving the inflation rate up were rising food prices, particularly the cost of fruit and vegetables.

There were also hikes in the cost of fish, confectionery and bread. The cost of oil products fell, however.

Excluding energy costs, consumer prices rose by 1.2% year-on-year.

Using the European Central Bank's favourite measure, the Harmonised Index of Consumer Prices (HICP), inflation also rose by 0.7% year-on-year in May.

Meanwhile, investor sentiment in Germany in June fell to its lowest level in seven months as uncertainty over Greece and subdued global growth hit confidence, a survey suggested.

The investor confidence index calculated by the ZEW economic institute fell by a steeper-than-expected 10.4 points to 31.5 points this month.

That is its lowest level since November 2014, ZEW said in a statement.

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