Final German HICP inflation to confirm flash estimates at 0.1% yoy

In Germany, all the major components, namely energy, food and services, decelerated, contributing to lower inflation in June. Flash German HICP inflation softened to 0.1% yoy in June. The national measure also softened from 0.7% yoy in May to 0.3% yoy. 

On the core components front, services declined the most, shaving 31bp from the headline. The steep hike witnessed in prices paid for transport and packaged holidays seems to have reversed in June.

"Looking ahead, German HICP inflation to average 0.4% in 2015 and 1.7% in 2016, while the core metric should remain stable at 1.2% in 2015 and 1.4% in 2016", says Societe Generale.