German inflation tumbles in May

Inflation in Germany, Europe's largest economy, fell back in May, official figures showed on Tuesday, as the volatility seen in the headline data since the start of the year continues. The German consumer price index rose by 1.5 percent in May compared with the same month last year, slower than the 2.0 percent recorded in April, the federal statistics office Destatis calculated in preliminary data.

Analysts surveyed by data company Factset had forecast an inflation rate of 1.6 percent for May.

Inflation in the eurozone's economic powerhouse had spiked past the European Central Bank's target of just below 2.0 percent in February. It fell back in March, but then rose again to hit the goal in April.

ECB policymakers attributed the volatility to fluctuations in food and energy prices, suggesting that the central bank was not ready just yet to wind down the massive economic monetary stimulus it had been providing to the single currency area's economy.