German inflation fell to zero in May compared with the same month in 2008, the lowest figure in 22 years, preliminary official figures show today.
For May, economists had expected inflation of 0.2% on a 12-month basis. In April, inflation stood at 0.7% in Europe's biggest economy.
Compared with April, consumer prices fell 0.1%, the Destatis national statistics service said. The last time the 12-month figure was this low was in April 1987, it added.
Analysts said that lower energy prices was again the main driver behind the strong decline in the headline rate.
Oil prices had spiked in the first half of 2008 and a drop since then has caused inflation to plummet.
Economists generally expect the 16-nation euro zone to dip briefly into a period of deflation but with oil now headed higher, they do not fear a prolonged period of overall price decreases.
