The Federal Statistics Office said on Wednesday that German inflation dipped to zero in May from 0.7 percent in April for the first time since 1987.

Wednesday's estimate was based on data from six of Germany's 16 states.

The new record low is largely due to consumer prices for energy-related products and food.

Prices for energy dropped by an average of 8 percent, mostly due to the sharp slump in oil prices. Fuel prices dropped by almost 17 percent.

Average food prices dropped by 1.2 percent compared to May 2008 with some dairy products and vegetables dropping as much as 40 percent.

Without food and energy -- which account for around 20 percent of average household spending -- inflation would have amounted to 1.4 percent.

ai/dpa/APF
Editor: Sonia Phalnikar