German import prices drop less than expectations in May

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.