CORRECTION - Germany's annual inflation stable in May, matching estimates

CORRECTS DAY IN PARA 1 AND PREVIOUS MONTHS' FIGURES IN PARAS 2 AND 3

By Mucahithan Avcioglu

ISTANBUL (AA) - Consumer prices in Germany rose 2.1% in May on a yearly basis, in line with expectations, according to official data released on Friday.

The figure was also stable from 2.1% in April, its lowest level since last October, the Federal Statistical Office (Destatis) data showed.

The figures were at 2.2% in March and 2.3% in January and February, down from a 14-month high of 2.6% in December.

The markets and Destatis had expected the figure to rise 2.1% on an annual basis in May.

A significant fall in energy prices drove the overall easing in annual inflation. The price of energy products saw a decline of 4.6% in May year-on-year.

Meanwhile, above-average increases in services and food prices continued to drive up inflation with increases of 3.4% and 2.8%, respectively.

The inflation rate excluding food and energy, often referred to as core inflation, also rose 2.8% in May on an annual basis.

Compared to April, consumer prices climbed 0.1% in May on a monthly basis, easing from 0.4% in April, also in line with market forecasts.