The inflation data is likely to come as welcome news for the European Central Bank, which embarked on a 1 trillion euro ($1.09 trillion) monetary stimulus program earlier this year to boost prices and economic growth in the region.
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At the same time, the better-than-expected numbers could put pressure on the central bank to unwind the program, analysts said.
"The data is really a double edge sword for the policy makers because on one hand, they are happy that inflation has picked up," Naeem Aslam, chief market analyst at AvaTrade, said in a note.
"But then on the other hand, the Bundesbank has more excuse to increase the noise that the purpose of the ECB's QE (quantitative easing) staying intact for a much longer time is not a good idea at all – not to mention, that they were not in very much of favor of having this in the first place," he added, referring to Germany's central bank.
The breakdown of the inflation numbers showed that core inflation - which strips out energy and food prices – rose 0.9 percent last month, up from 0.7 percent in April. That's still well below the ECB's medium-term target of inflation close to 2 percent.
Other data released at the same time showed prices at the factory gate fell 0.1 in April from a month earlier against market expectations for a 0.1 percent rise.