Berlin - Germany's inflation rate slid to zero in May for the first time in 22 years, the country's statistics office reported Wednesday, fuelling concerns about deflation in Europe as economic growth slows sharply and energy costs fall.

Compared to April, the statistics office said Germany's inflation rate fell by 0.1 per cent in May. Falling food prices helped to undercut inflationary pressures in the nation.

European Central Bank chief Jean-Claude Trichet has already warned that inflation in the 16-member eurozone will briefly slip into negative territory during the course of the year as the currency bloc faces up to its biggest economic downturn in decades.

However, analysts believe that falling inflation could also help to boost private consumption in Europe.

German retail sales unexpectedly rose in April, by 0.5 per cent over March's figures in real and seasonally adjusted terms, the statistics office said last month.(dpa)