The inflation rate in Germany as measured by the consumer price index (CPI) is expected to rise again in July, German federal statistics office Destatis said on Friday.

According to the preliminary figures of Destatis, the overall index of inflation rate in July is expected to increase by 1.7 percent year-on-year, up from 1.5 percent in May and 1.6 percent in June.

The main reason for the increase in July is the rise of food costs, which are 2.7 percent more expensive than July 2016.

Measured with the harmonized index of consumer prices (HICP), which is calculated to compare with other European countries, German inflation in July is expected to increase by 1.5 percent year-on-year and to rise by 0.4 percent on June, Destatis said.

"German inflation edged higher this month adding to signs of a pickup in the European economy," German news agency dpa commented.